The state of the market…

Posted on Jun 03, 2011 by in Letters

The trendline from March 09 is broken.  As we have said repeatedly, trendline breaks always have consequences.  Some of the minor trendlines were already broken (obviously -- and the harbingers of this break).  While the Basing Point stops have not been hit it never hurts to do some hedging, or even some scaling out.  How big a downwave -- or sidewave-- results here remains to be seen, but waves are often proportional.  There are of course those who compute fibonacci retracements and those who shake the old crystal ball.  We are still long gold and silver and the Swiss franc, but we sold the Ford in one of the kids' accounts today for about a handsome profit, as it was bought as a lottery ticket in the great crash.

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