Profits Map For The Next 6 Months!
There is always more to this market then the daily grind, it pays to look at what has happened and what could lie ahead, especially if you are more then a day trader with a longer timeline in investments~~~
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Every so often it pays to take a few steps back … look at the charts from a longer-term point of view … and put the markets into perspective.
This is especially true today with so much confusion in the markets … so much misinformation in the news … so many threats to your wealth … and so much background noise and distractions.
But when you step back and look at the big picture, you can clearly see that major trends do NOT change overnight.
In a few minutes, I’ll show you my market roadmaps of the Dow Industrials, the dollar, and gold.
But before I do that, let me give you the conclusions I‘ve drawn from the latest long-term review I’ve done of my research, economic models, and trading cycles.
First and foremost, the mortgage, debt, and real estate crises in the United States are not over — not by a long shot. Neither is the destruction occurring in commercial real estate … the automobile industry … and small and large businesses alike all over the country.
Second, this also means the Fed will continue to …
Pump even more fiat money into the economy like there’s no tomorrow to prevent a financial meltdown
Purchase more of the U.S. Treasury’s debt, in one giant shell game that will forever change the value of your money, devaluing it in the greatest re-inflation campaign of all time
Keep short-term interest rates absurdly low, with savers bearing the brunt of its policies
The end result …
A dollar that will remain in a long-term bear market, clearly set to lose much more of its purchasing power in the months and years ahead
An ongoing collapse in U.S. Treasury bond prices, despite the Fed’s purchases of U.S. Treasury bonds, and as the entire world awakens to the fact that the U.S. government is bankrupt
A continued slide into a black hole for the U.S. economy
All this, while China, India and other Asian countries continue to barrel ahead.
But if you think any of the above means there’s no money to be made in the markets, think again. Just take a look at how the positions I’ve previously suggested in this column are faring …
Of the 16 suggestions I’ve made, 15 are winners, with open gains as high as 38.27 percent — in as little as eight weeks.
What’s more, based on what I’m seeing, I expect even more gains in the weeks and months ahead.
My Profits Roadmap For The Next Six Months …
Before I get to the specifics, there’s a few things to keep in mind …
First, wild swings will continue to dominate almost all markets, confusing investors and professional traders alike.
Consequently, those who don’t keep the big picture in focus will suffer big losses. But for those who do, big gains are on the horizon.
Second, all major intermediate-term trends remain intact. Higher for stocks and natural resources, sharply lower for the U.S. dollar and U.S. Treasury bonds.
Third, re-inflation attempts by the Fed will continue to take hold.
Fourth, Asian markets are poised to outperform U.S. markets.
Now, let’s look at the charts, so you can see for yourself what I’m talking about …
The Dow: Notice how the Dow has thrust above an important downtrend line on the weekly chart.
This is a significant development. While it does not mean the Dow has bottomed, it does indicate that it has certainly stabilized.
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Moreover, it would be perfectly normal for the Dow to continue to rally as high as the 50 percent retracement level shown on the chart, regaining half of what it’s lost from its peak. That stands at the 10,344 level.
Additionally, in this second chart, my cycle studies show the Dow rallying into the end of June, then pulling back a tad, and rallying again into mid-August, where I would expect 10,344 to be reached.
Bottom line for the Dow Industrials: I expect the rally in stocks to continue higher, albeit with pullbacks along the way.
The U.S. Dollar: The dollar is a key driver of many markets.
Notice how weak the dollar is on this chart.
After a brief rally in April, the dollar has collapsed again and now lies within striking distance of its record low. The downtrend is solid, sharp, and almost relentless with no major support nearby, other than the record low at 70.698 on the index.
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Plus, this cycle chart of the dollar confirms the chart action. It shows the dollar trending lower into late August, early September, before the downtrend gets any relief.
Bottom line for the dollar: It’s in trouble. This supports my fundamental view that the Fed not only is printing money like crazy, but will continue to do so. And, despite what the Fed may say in public, it actually wants a weaker dollar to help re-ignite asset inflation.
Gold: The yellow metal is in an extraordinarily bullish position, preparing to blast off to well over $1,000 an ounce.
Take a look at the chart. Notice gold’s strong uptrend, supported by two rising uptrend lines.
Also, look at how gold has now thrust up through the downtrend line from its most recent high back in March. A very bullish picture indeed!
Even more bullish: The cycle projections for gold. Look at how my cycle projections nailed gold’s late 2008 low at just under $700. It then pointed to a choppy but rising trend through the first half of this year, which is exactly the action we saw, with gold rising more than $50 last week alone.
Now take a look at the October period for this year, and see how the bullish cycle patterns literally take off to the upside, rising into the fall of 2010!
These projections in gold are entirely in keeping with the underlying fundamentals, which show …
1. A deteriorating economy
2. Massive re-inflation efforts by the Fed
3. A collapsing dollar
Bottom line for gold: It’s one of the strongest assets there is, as I’ve been telling you all along. I expect my target of $2,250 gold to be hit by August 2010, and possibly even sooner.
Bottom line for YOU …
First, if you don’t already own any of the shares mentioned previously, it’s not too late.
I would seriously consider buying the Dow Jones Diamonds (DIA) … the iShares FTSE/Xinhua China 25 … and the Energy Select Sector SPDR (XLE).
For those and any other positions you buy, place a protective sell stop at no more than 10 percent below your entry price to help reduce risk.
Second, you must own gold. That should be a no-brainer. One of the best ways: The SPDR Gold Trust , the most liquid gold exchange traded fund out there.
For more precise buy-and-sell signals and other ways to trade gold, including mining shares and more, be sure to see my .
Third, continue to steer clear of long-term U.S. Treasury bonds. They are a disaster in the making. There is nothing safe about them right now.
Fourth, stash your safe-keeping money in short-term Treasury bills or the equivalent Treasury-bill only money market fund.
Fifth, to make oodles of money, don’t be afraid of the markets and don’t confuse the economy with the markets. Sometimes markets make major moves that are a complete paradox with the underlying fundamentals.
Just like we’re seeing now. The economy is still sinking, yet stocks are rallying and getting set to rally even more.
Lastly, stay tuned!
Best wishes,
Larry
P.S. Be sure and join my as we make oodles of money in these markets. It’s for 12 monthly issues, 24/7 website access, all flash alerts and all recommendations!
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From The Same Group another article with more charts and wisdom~~
Here’s a story of mine that is published today in Dow Jones Marketwatch — it’s featured in their Trading Strategies section …
Sean Brodrick offers suggestions on ways to protect yourself from a sell-off in the dollar.
And on Friday, I was interviewed by Phil at HoweStreet.com. You can listen to that conversation here:
It’s always great fun talking with Phil, and you might find some useful information there as well.
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This overhead resistance zone for the euro could provide support for the US dollar. 
There is tremendous strength in the QQQQ. If the S&P 500 continues higher, tech will likely lead the way.
Here are some other stories I’m looking at …
Taxpayers are on the hook for an extra $55,000 a household to cover rising federal commitments made just in the past year for retirement benefits, the national debt and other government promises, a USA TODAY analysis shows. The 12% rise in red ink in 2008 stems from an explosion of federal borrowing during the recession, plus an aging population driving up the costs of Medicare and Social Security.
USA TODAY used federal data to compute all government liabilities, from Treasury bonds to Medicare to military pensions. Bottom line: The government took on $6.8 trillion in new obligations in 2008, pushing the total owed to a record $63.8 trillion.
XX Sean’s note – that’s about $515,000 per household. Pay up!
We now have Goldman Sachs this morning : “sell Petrobras October $34 put options for $1.95 because a U.S. economic recovery and lower petrochemical supplies will limit declines in the price of oil.” What Goldman does not mention is that they were one of the “large speculators” that increased their net long positions in commodities 300% since they got their TARP money. This is just - take OUR money and invest it in commodities, then pull out all the stops to run oil up 88% where these leveraged investment can pay off 10:1 and then give us our money back early at virtually no cost while keeping the 900% gains for themselves - !
That is how, using our bail-out money, the price of oil has been driven up 88% in 6 months and it will go up another 88% if this Administration is going to act as deaf, dumb and blind as the last Administration while the American people are robbed blind with over $600Bn global consumer dollars being sucked out of the economy with every $10 increase in the price of crude. We are at a 25-year high in petroleum storage in the US and we have 139M barrels more in storage than last year - an average increase of nearly 3M barrels a WEEK despite OPEC’s 29Mb/week production cut. that there is a “floating oil lake” that “is now so big that it is likely to keep a lid on prices for some time” as the volume of oil stored at sea has risen to record levels.
Gas prices jump 20% in 32 days, nearing $2.50 a gallon and putting more pressure on the already battered economy. [get chart]
Americans are already dealing with high unemployment and a collapsing housing market. If gas prices continue to climb at their heady rates, Americans who are living “paycheck to paycheck” could put the brakes on their plans to tool around this summer, crimping some of the government’s efforts to pull the economy out of recession, said Tom Kloza, chief oil analyst for the Oil Price Information Service.
According to new analysis by the American Institute for Economic Research, . News will likely focus on how the drop could severely hinder Washington’s ability to pay down the projected $1.7 trillion deficit. That’s missing a major point — how the drop will impact American workers’ outlook for prosperity and .
How widespread is this problem, and how can the oil industry help? A found that over 80 percent of oil company shares are owned by pension funds, endowments, individual investors and asset management companies with mutual funds. This means that a major part of restoring the investments of retirees, union members, and every other person saving for the future lies in how politicians view and treat our domestic companies.
NOTE: Global warming debunker ! Not surprising since so-called experts who deny global warming tend to be .
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