DOW at a crossroads!

Good morning all,

Well this is where things should get interesting regarding the DOW futures. The DEC contract hit its contract high back on July 19th at 14190. The DOW then fell 1,500 points to an intraday low of 12,680 on August 16th. We now find the DOW trading just above the June 1st high of 13,917 and in significantly overbought territory. In spite of the fact that all of the talking heads on CNBC believe that the economy is out of the woods and life is beautiful once again, I can't help to think that this A-B-C retracement rally, powered by a .50% rate cut by the FED, is going to fail miserably. I guess we'll just have to wait and see but I won't start selling the DOW futures just yet. Why? Because I'm going to play golf with my son, Brian, today. I love to trade and fatten my account equity but I love spending time with my kids even more! You only live once!

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