Surviving the markets

Good morning,

If you don't subscribe to or read The Economist then please take a moment and click the link to go to their website. I've been reading this magazine for more years than I can remember. I'd have to say that if you forced me to choose just one magazine that I could read I'd have to choose this one. In the 8/18 issue there was a terrific article titled Surviving the Markets on page 9. One line in the article really stood out. "Because the crisis taps so deeply into the newly devised structures of finance, anyone who say the worst is definitely over is either a fool or someone with a position to protect". Absolute Genius! How long has the National Association of Realtors been telling us that "the worst is over" and NOW is absolutely the best time to buy! Do you think the folks at the NAR have a position to protect? You betcha!

The talking heads on Wall Street keep saying this is "just a correction" in a bull market. If they would only tell us where they buy their crystal balls from! Nobody knows where the markets will be tomorrow, next month or next year. All we can do is follow the major underlying trends. The underlying trend in stocks is now DOWN. Follow the trend and make lots of money. Why make it harder than it has to be?

Dale F. Doelling
President and Chief Market Technician
Trends In Commodities