Wonder Bread is Up 74 Percent

As the market dipped last week, in an anticipated Floydian downside, the volume of the market as this occurred was not large. A telling statement.

Bananas are up 41% since 2003. Wonder Bread is up 74% in the same time period, Skim Mil up 38% and Diet Coke 10%. This is what pumps inflation. China just showed it's highest inflation numbers since 1996.

With strong influence economic data out this week it's likely to have classic whipsaw, as the market struggles between optimism and realism. Downside, we do not believe, is yet over, as the historical cycle of # of days between moves has not yet shown a full downside, with strong support lines showing hesitancy time and time again. Because of this we believe our Dow projections could have two additional "faltering points": up moves to just under 13,000 (12,950) and down moves to just under 12,540.

The USD is reaching new highs, due to NOTHING we have done to stabilize the dollar, but the massively strengthening Euro hitting new highs. We believe the Euro may soon seriously falter, which could affect the USD positively, and affect the price of a barrel of oil. Remember, barrels of oil are priced worldwide in USD, and any faltering of the Euro could actually decrease our inflation, and lower the price of oil.

When this happens Republicans will take the responsibility, and point out the preventive measures put in place that are now working, with only those of us in the know smiling as to "all things are not as they appear."

We saw a good upsurge on Monday, with the market topping the theoretical Dow at 12,944, which MAY be the first top to the market, before more downside. The June630C, available and bought on Friday, surged to 24.70 in yesterday's trading, and remains an open signal.

Study our Dow projections carefully, as we believe the market may TOP just at 13,000 and have a short, but potentially large slide, before more upside.