Much Depends on What Facts Hit the Market

Puts now have the strength, with a count of 6 bias, and a potential new market bottom. In addition to the economic calendar for the week note the point and figure bullish % chart, as high as 72 and dropping, and the Dow chart that shows each support line (where the O's are) down to 8000.

With the market proving euphoric in its mad rush up it is a natural consolidation we've seen, with market bottoms on Friday of 8190. Our open signal June 420C was profitable during whipsaw on Friday, and available below prior day close. We also continue to hold this, and will list a higher risk fast trade put, dependent upon futures.

Our longer term projections (a week or two) are that the market will short term rally back to 8550, whipsaw down, and perhaps begin a climb back to higher highs. Much depends on what facts hit the markets.

Here's a few:

1. In January 2009 more cars were sold in China than in the U.S.

2. 42% of unemployed Americans are not currently eligible to collect unemployment benefits.

3. 70% of this years college seniors will graduate without having secured a job.

Always think about the economy as "how many dollars flow." When dollars do not "move", or "flow", erratic markets are created.

Remember: do not worry about "what should be." Study "what is."

:): Texas is the 3rd highest amongst all states in teen pregnancy rates; 94% of Texas Public Schools districts teach abstinence as their only form of sex education.