The New CS Board

[gdl]

I am not the person to ask on individual stocks or sectors since I play the broader SPX and commodities when I see a strong trend.

I am seeing a correlation with stronger economic activity and Gold's slump, and US dollars strength. I hope to get this confirmed with a rise in the 10 year note above 3 percent.

As for the market it seems to be in the latter part of wave 3 of 5. No hyped expectations, individuals have not embraced this 6 year move. Still a lot of skepticism. The assumption going forward is that real economic growth will not be seen. Instead most believe high productivity and steady wages will allow companies to still show small profit increases. I am not in that camp. I am still looking for expansion of credit and higher costs. Looking for the SPX to find a low next week, not below 1965, followed by a 100 SPX point drive to new highs. SPX of 2070 is the upper range of an assumed top before we have a decent correction. It could very well fall into my assumed top in October.