Thursday, July 06, 2006

WHAT TO EXPECT IN THE COMING WEEKS

The markets have been moving higher as of late though with a substantial decrease in volume. This is telling us that the rally lacks the strength to take us to new highs. The 11,700 on the DOW will be the high for this year. I am expecting the markets to break down in the weeks ahead with an occasional plunge which should take us below 10,000 on the DOW and under 2000 on the Nasdaq. As I write I am seeing increasing sign of a sell off across the board with many leaders showing weakness. I would use this opportunity to add to my short positions particularly in HANS and GOOG.

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