This is Going to take a Long Time

Big Picture

Now that the end of quarter adjustments are behind us I think we will see things settle in. Everyone knows the economic numbers over the next six months are going to be challenging.

At the moment it appears that a majority of CEO’s are ill prepared for where we are. There is a lot stupid talk, “things haven’t really changed”, “need to work with scale when this ends”, “changes will be short lived”

The stimulus response fits into this, so there will be upward reactions at times and happy talk, but little long term change that will help build a real growth economy.

No flush now, we are keeping leverage at a medium level, am buying a little gold to work with our negative based stock trading strategy, and watching.

Watching Apple

In a sense, the way Apple goes from here is going to have a big effect on the short term direction of the markets. When you look at the Apple chart, you in a sense are looking at the Dow chart.

Yesterday was a major rally failure for Apple. Wall Street and Cupertino will be on deck to reverse this failure to hold above 262. So a trading range will evolve, 237 to 262. Lets see how this works out.