This is a composite group of 16 DJI stocks from 1970. The average index is seen as a 'real' process of market supply/demand as a divisor is not used.

The 'monthly' shooting star is not a good sign, and as the process of BOB triggers suggest that no pull back to the old TR made take place this is not allow as for the market to make way higher.

Over the longer term this suggest more so of a long term high being put in place and not tradable bull side moves. The lower TR in place is important as you can see on both charts that it had been create 2 times at the same levels, this is not common in markets. Most times a TR will be create and it will be pulling/pushing the market towards/away from the TR levels for years.

The old 46-47 level the low of the TR is a place to be watching, as it suggest more then likely we are headed to that area.

The last markup phase was in late 2006 and that was only to an old TR that existed this markup process only moved the market from one trading range to the next. It took place under the most bullish consensus in the last 45 years ‘more so’ than the 2000 high, during the entire decline from 2000 the market only experienced 9 nonconsecutive weeks of bears over bulls this is a historical sentiment reading going back 45 years. Major market low points are seen with at least 40 to 55 consecutive weeks on average of bears over bulls.

If liquidity was ever an issue which it is not bringing cause to the situation at hand we can just observe the margin activity of the NASDAQ and NYSE markets and which again created all time highs just a month or so ago. Red flags Mary Shapiro has been suggesting a lot of them but as mass psychology takes place she's only to do her job and not to hold the hand of investors. The Federal Reserve created the emphasis in which John Law a.k.a. Alan Greenspan in this century as bringing to market the most excessive forms of legalized drugs that the American system could handle. Think that globalization will have another opportunity? Think again because as always when things begin to unravel it just happens much too quickly even in terms of decades, the massive mindset of the globalize investor is just a flash in the pan as to the historical economy that has been in place for centuries to be tested.

The anomalies that have taken place psychologically and systematically at each price level worldwide suggest that the excessive use of credit created more than needed the atmosphere of bullish sentiment to propel the market to just a slightly 8 or 9% higher level than seven years ago. This type of activity is not suggesting of an ongoing bull phase in which markets create higher highs consistently each month or each year.

The propelling mental concept that markets always must continue in a direction suggest that quite possibly a ‘new era’ has already as I believe in gear for well over a half a decade without most or many even suggesting an inkling that depressed prices actually are event forthcoming.

I am a bellwether trader and from an era that suggest the market no longer respects, as I have posted that November 6 of the year 2000 was one of the most important points historically in all world markets economically. You will find large funds and institutional advisors that have been long in the game of investing cease to exist as they bailed out over time nonchalantly. It has been said long ago that so goes General Motors so goes the economy, this is a very pointed suggestion as I have been suggesting that internally USA markets as well as other world markets have been following the path of General Motors.

Saddam was the first individual leader that chose to sell his oil without US dollars so doing we have been noticing for over seven years now other nations each quarter doing the same. An empire taxes other empire states through the use of its currency this process now into its seventh year brings home not the wealth of other nations but its problems. America will have to protect itself fundamentally it will do so economically as it always has done in terms of endearment will be exclusively set to protection and not growth.

The wild antics of the individual on television yesterday of course was pretty much staged, narcissism and its behavior patterns have been relevant in our society well over a decade. Forget the investor they're already gone as suggested is a tone of such an elitist attitude that the only forthcoming direction of the individuals pattern will be similar to Ted Turner's. Smokes and Mirrors they're everywhere and everyone is only looking at their own reflections the markets are of mice and men and for some strange reason they call nature no matter how powerful men become the mice are still around.

The United States government is most likely on the course of great change possibly the elimination of the Federal Reserve System by the monetary act of 1980 could become a reality. The US dollar being at 90-year-low points consecutively over the last 20 years created by the excessive expansion of credit could bring about one of the most dramatic changes of currency dislocation in the last 50 years. It will be the United States currency that will be the winner outright as protection will be sought from the United States government.

The Federal Reserve no longer wants to or needs to create liquidity the system is abundant with liquidity and will become more abundant as self liquidation which is taking place now moves towards force liquidation of assets.

As LTCF was the emphasis to bring down Refco after five to six years in hiding its liabilities, we may see even larger institutions being jeopardize equally by the recent events. The restate plunge that is taking place is mostly far reaching than any commodity house worldwide. Markets will never move to one acceptable side of value to the next acceptable side of value. You will find historically that they will constantly overshoot the extremes most times quite actively suggesting that we are either seeing the gods in heaven are the evils of hell itself.

Corporate espionage has always been a main emphasis in the battlefield, the Bear Stearns CEO most likely an equal to Nick Leeson of Baring Securities Singapore debacle. Bear Stearns has been wanted for many years by corporate insiders but as Ace and his partner (recently deceased about a year ago) tried holding out, well there's other ways to get what other individuals want. Payment in full to the CEO of Bear Stearns.

I'm glad I stopped around to type a little bit, not worth much, fishing is pretty good now and by the beginning of September maybe I have something worth saying other than just baloney and cheese.

Have a great one all and thanks for all your assistance, see you down the road a bit.

Z