Market Week Review

• S&P - Up 36% since Mar 6th; completed 9th week of gains; Technical indicators have been on buy since Mar 18th; Commerical Hedges have reducing shorts and small traders have been cutting back on net long positions;
  
• Gold - At $917 up from $886 last week; Gold is looking weak due to low volumes and open interest; COT - continues to be long Gold
  
• USD - Has been falling since Mar 6th, it is down 8%; on the week it has fallen from 84.54 to 82.53 - World is losing confidence in the Dollar due to amount of stimulus that has being printed
• US Treasuries/Bonds - Has been falling as well, same issues as the USD and funding requirements of the US government together with China less willing to fund the US deficits
• Oil - Moving up at $59.66 from $54.06 last week; COT continues to be long Oil
  

In his latest newsletter, market giant Jeremy Grantham of money management firm GMO LLC proclaimed that he was parting company with his “bearish allies.” Why? He identified the Presidential Cycle and “the power of stimulus and moral hazard to move the stock market many multiples of their modest effects on the real economy” as the reason why he had recently turned bullish.

The Great Re-Leveraging - Markets Going Up

The title gives me phase to think. Wow....it really could be.

Are we prepared, positioned? Things have really changed over the last 1-2 months. How much have you gotten of this move up? Were you positioned for it....the indicators were all there.

Interest rates are effectively close to zero and have been for months. I have been asking what about other investments; corporate bonds, convertibles, trusts and REITs there has to be some great opportunities. But my advisors had nothing....Hmmm.... (not happy)

There has been some great yields....and opportunities. Timing and stops are everything.

There is lots of monies that have been setting on the side lines...and lot more being added by government printing presses. It looks like these funds are flowing back into the markets, and things should be moving up. The trend is up.

But the markets have moved up for about 8 weeks now....it is due for a correction. But it is only a correction on this leg up to higher levels.

However, all is not safe, caution is required. This is a Bear Market and it is a Bear Rally, which is due for a short term correction.

Technical indicators went Long mid March (I passed on it....but they were right!)