The DOW continues to confound.

Good morning all,

The DOW could not confirm Friday's close below the 100-day MA yesterday which leads me to believe that there may still be some life left in the equities markets. The DEC DOW contract is up 45 this morning and, one thing is for sure, the higher the market goes now the larger the correction will be later. Show me someone, besides myself, that isn't BULLISH! There's just way too much complacency which will eventually lead to a mass exodus and, as Ralph Acampora recently said, "a buying boycott". When that happens you'll need to be ready because you want to be SHORT as soon as possible in order to take full advantage of the carnage that will ensue.

Gold gave us another great buying opportunity yesterday as the Dollar tried to rally off of extremely oversold conditions. I know how hard it is to step up in these sharp selloffs but it's the only way to play Gold right now. If the market breaks hard, as it did yesterday, you simply BUY AT THE MARKET. Be alert and stay tuned!

Dale F. Doelling
President and Chief Market Technician
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