Neither bulls nor bears seems particularly inspired at the moment, although the edge still goes to the latter and to the downside target given here previously: 970.80. A descent to that Hidden Pivot would become an odds-on bet if its midpoint sibling at 985.60 is exceeded on a closing basis. Alternatively, the futures would need to touch 1000.10 on a rally Monday night or Tuesday to turn the minor trend bullish. A more important midpoint resistance would come into play thereupon, and with its breach a potential run-up to 1028.10.
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Take any dozen good reasons for being bearish right now and they still don’t equal the bullishness of the chart shown. The undeniably compelling rally objective is 13085, a 4.8% move from current levels, and one can only surmise that the dusting the 12158 midpoint received on the last pullback (12/28) all but clinched a finishing stroke to the higher number. Moreover, it implies that bears shouldn’t get their hopes too high even if, in the next few days, the Dow plummets 324 points to retest the midpoint support. As of now, that would signal not weakness, but a screaming opportunity to get long. Hard to believe, really, but that’s what the charts say.
Frank Shostak is one of our favorite economists because he talks plain-sense. In a recent essay he wrote for Mises Institute, he explained why the government’s huge stimulus efforts have failed to stimulate much of anything. To make matters worse, says Shostak, if the feds continue down this path, seeding the banks with yet more money from nowhere, it will effectively destroy the real-savings base that is absolutely crucial to any recovery. Click here to read his essay.









Zazi Breathes Life into War on Terror
by Rick Ackerman on September 29, 2009 12:01 am GMT · 16 comments
Americans owe a debt of thanks to Najibullah Zazi, since he has made it far more difficult for Islamic terrorists operating in the U.S. to buy the supplies they would need to make conventional bombs. Acquiring nail-polish remover and hydrogen peroxide in industrial quantities at a suburban Colorado beauty supply store, Zazi told the check-out clerk that he had many girlfriends. His thick, black beard alone should have been enough to arouse suspicions. “Oh, that? I am playing the role of Mr. Abraham Lincoln on the stage of your » Read the full article