Shorting the Market and Shorting Sectors

Market moves went to our Dow tops like clockwork, and reversed. There may be another test of 7950 to 8015, but the topping we saw may now allow a strong consolidation.

If this consolidation has good volume and moves near 7250 we believe the opportunity for a stronger upside has high possibility. Bear market rally's, which this may be, can have surprising strength.

However, if the continued "selling of America" takes place by our President, we could truly begin to slow the FEAR. I applaud his constant newbites, in front of people, and "selling"...this is exactly what we need.

For years we have been led by false facts, and we now know it. Here's another one:

The nation is irate over the bonuses for the AIG employees. Dumb. There is not a shred of justice in the hysteria that followed. As AIG chief Ed Liddy explained on the hill last week, the people receiving retention bonuses were NOT the same people who launched AIG's unhedged housing bets that brought the company down. Those people were gone. Their pay was already clawed back.

But America and our Congress got false facts, and went for blood. Those who remained had been asked a year ago to stay and work themselves out of a job. In accepting the terms offered to them, they committed no offense (say, failing to pay taxes). Their only crime was possessing market knowledge, and we as citizens needed this type of individual to unravel the mess.

So now, they've worked for nothing, we've proven "we are strong", and we never got to the root of the issue, yet. Yet again, a "false fact" fueled fervor. We spent 1 trillion a few years ago on the Iraqi "false fact".

Remember, think with a basis of disrespect and cynicism.

We believe Treasuries are now ready to be our next bubble. People are actually buying these things, when the value of the USD is in the crapper. The USA name can sell anything. In our Blue Chip service (www.bluechipoptions.com) we have ways we are shorting the U.S. Treasury.

By the way, much talk in the world on "shorting the market, or a sector". I'll be teaching this next few months on what we do, as when we buy puts on the OEX we are shorting the market, and shorting sectors.

Thanks for being with us through such a great win ratio recently!!!!