DOW AND SPX READY TO RUMBLE

Dow Daily Chart hit the Magic 12,200 mark and showed weakness.

 Is it ready to rumble? All measurements say yes all we need is a geopolitical

event to bring us the the greatest Bear Market the planet has ever seen.

 Can the Fed ignite the Markets forever with Q3 and Q4. Hardly. When

you consider the harm the Fed is doing by artifically feeding the Markets it just

means the Markets have further to fall. The end of a Gigantic Cycle is the end

of a Cycle and no shenanigans will prevent the inevitable. What we are seeing

on the Chart is Wave 2 up from the bottom in March 2009. Wave 3 down is

just about to begin and will be larger than Wave 1 from the Top in 2008. Thats

not to mention Wave 4 and Wave 5 down. When its all over we will be down

75%-92%. In other words the fundementalists and Mutual fund Managers will

have a hell of a time explaining to their clients they are wiped out and permanently

wiped out since it will take 25-40 years for the Markets to come back. When the

Markets crashed in 1929 it was 1968 before you got your $1 dollar back adjusted

 for inflation. The Markets went sideways for 40 years. If the Markets went sideways

from here instead of crashing for 40 years everybody will be effectively wiped out

because inflation of 2%-10% over 40 years will reduce any holdings to zero not

counting Brokers fees of 2-3%. What to do? Get out of Stocks and into Government

Bonds short term treasuries and roll over every 90 days. Is Gold the answer? No.

Cash is King.

Dow weekly Chart is ready to roll over.



S&P 500 Large Cap Index Daily is ready to roll over.



S&P 500 Weekly is ready to roll over. Risk is hugh.