![\"\"](\"http:\/\/www.cheapiv.com\/images\/DJX20090615.jpg\" "\\"Trade")
<\/p>\n","protected":false},"excerpt":{"rendered":"As we have seen in the past several weeks the market is absorbing most of the news pretty well.\u00c2\u00a0 We moved from one consolidation to the next.\u00c2\u00a0 Our current consolidation is tighter in range on the DJIA.\u00c2\u00a0 The consolidation in May was about 400 points wide and our current consolidation is only about 280 points wide.\u00c2\u00a0 The tighter the coil (market) gets compressed the more violent the movement is out of the consolidation.\u00c2\u00a0 On the plus side we have a strengthening dollar and bond market.\u00c2\u00a0 This drives oil and gold down.\u00c2\u00a0 Inflation fears may be easing slightly, but the fact still remains that we have pushed an enormous amount of money into our economy to spark growth.\u00c2\u00a0 This alone will force inflation fears.\u00c2\u00a0 If we add the lack of confidence from major international holders of our dollars (China\/Japan), we should expect to have pressure against the dollar and bond market.\u00c2\u00a0 The simple fact remains clear that we are relying on international borrowing to keep our country afloat.\u00c2\u00a0 The Fed is pushing out higher quantities of bonds\/notes on a regular basis and the market can only absorb them through higher rates.\u00c2\u00a0 If the market fails to absorb these bonds\/notes then there will be a significant lack of confidence in our economy, country, dollar.\u00c2\u00a0 This could be catastrophic for the current rally.<\/p>\n
We do have one short term anomaly that we should keep an eye on.\u00c2\u00a0 We are close to the end of a quarter, which usually drives markets up.\u00c2\u00a0 If we can hold above support levels (8600 DJIA and 92.8 SPY) and possibly break the upside resistance (8,850 DJIA and 95.74 SPY) in the market, institutions marking their positions will most likely cause a short squeeze especially near the end of a quarter.<\/p>\n
Unfortunately, the factors that got us into this mess are still there.\u00c2\u00a0 Our auto industry has failed, our banks are still a mess, now our government has pushed too many dollars into these bailouts that it will lead to the tax payer being on the hook for more money with a higher deficit.\u00c2\u00a0 We will continue to have a mix of inflation on some assets and deflation on others.<\/p>\n
Expiration is this week, so there may be some slight shenanigans with volatile movements!<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
As we have seen in the past several weeks the market is absorbing most of the news pretty well.\u00c2\u00a0 We moved from one consolidation to the next.\u00c2\u00a0 Our current consolidation is tighter in range on the DJIA.\u00c2\u00a0 The consolidation in May was about 400 points wide and our current consolidation is only about 280 points […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-182","post","type-post","status-publish","format-standard","hentry","category-week-ahead"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=182"}],"version-history":[{"count":0,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/182\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=182"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}