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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (27324)	3/9/2010 7:18:29 AM
From: Real Man	2 Recommendations Respond to of 71456

Technically, we need to watch for a potential breakdown for SP500 and other market indexes right now, but a move to new highs will certainly invalidate the reaction rally. Overall, I am getting long term topping signals and put the whole rally from March 2009 on watch for between now and April, regardless. I am expecting something similar to 2004 (flat to slightly down), but another crash cannot be ruled out. I would not hold long or short positions in the broad market at this time, but I myself would be more inclined to go short. This aligns with the Fed tightening. There was no hike of Fed funds rate, but the Fed withdrew most emergency liquidity measures as of late January, hiked discount rate between meetings in February, and will complete their quantitative easing at the end of this month. M3 is currently declining, which indicates that the "debt black hole" could have an upper hand at this time. Cash levels at mutual funds are close to record lows.