Oct 6, 2010

Short term: 1 green, 1 yellow, 2 red — hugely overbought. nothing new
Int term: 2 green, 2 yellow — uptrend to continue. nothing new
Stock targets: 79% swimming, 15% neutral, 6% sinking — everything going up. fundamentals and valuation and stockpicking no longer matter. nothing new

Nothing new in the indicators. I don’t expect them to signal a top in timely fashion here. They will signal a decline but in all likelihood only after it has chewed thru quite a bit of downside. In the meantime, there is no expectation of anything other than continued asset inflation and currency debasement. We are clearly in an asset bubble here. Cash is crap and in particular the dollar. Personally, I much prefer rolling any profits into things which the Fed cannot destroy — gold, food, ammo. And international and commodities are still the investments of choice. On this rally. keep tax consequences of decisions in mind. This rally is inflation. Paying taxes on inflation is pure theft. Don’t get into a pure trading or momentum situation where you have to sell something and pay taxes simply because of short-term price changes. don’t chase.

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