Gold Reached a Record

Futures were up 78 points at 6 a.m. and the line from Bloomberg says it all:

Stocks Rise Worldwide as Dubai Concern Wanes, China Expands; Dollar Drops Stocks rallied from London to Shanghai and the dollar fell as Dubai said half of its debts are “stable” and Chinese manufacturing grew at the fastest pace in five years. The yen fell the most in seven weeks against the dollar, while gold reached a record.

This is what happened in overnight trading, proving Floydian theory that the Dubai debt would be covered within days, and that the losses were all known. And the next piece of pre-market news:
√U.S. Stock-Index Futures Gain as Alcoa, Barrick, Exxon, Citigroup Advance U.S. stock-index futures advanced, indicating the Standard & Poor’s 500 Index may extend yesterday’s gain, as China’s manufacturing grew last month at the fastest pace in five years and commodities rallied.U.S. Stock-Index Futures Gain as Alcoa, Barrick, Exxon, Citigroup Advance U.S. stock-index futures advanced, indicating the Standard & Poor’s 500 Index may extend yesterday’s gain, as China’s manufacturing grew last month at the fastest pace in five years and commodities rallied.

It's with this kind of "bravo" pre-market that typically leads to reversal.

Weaving Straw Baskets-Fifty Steps to Understanding

1) The majority always leads, and always forgets history.

2) Everything is really okay.

3) Everyone wants to dance, many in different ways, many so they are never seen, many so they wish they could be seen, and many that are always seen.

4) Negotiation is the art of understanding FEAR and GREED.

5) The mood of the public is first trended by stock markets, which show levels of optimism, and supply and demand in the market place.
The market resurged dramatically and was up over 140 points by 2.30 p.m.

Only traders following futures and paying above prior day close were able to profit on our Dec 520 Call, profiting to 20% but most of our traders stayed out of the trade, waiting for bias.

We now have a bias, but think we are seriously approaching a market top.