Dow Retest of Intermediate Lows

This past week saw another continued wave of selling over all of the major market indices. Even gold, that time tested commodity, could not help but to end the week lower.

The above graph shows Dow support at around 9600. Any breach below this level means we will then test the March 2009 lows. Resistance is around 11900. Of course, many of the indicators show we are approaching over sold levels. These are technical market indicators which means almost anything can still happen. There is still alot of fear in the marketplace with respect to jobs, the economy, nationalization of our health care system, natural disasters, man-made disasters. Markets typically do not crash in summer months NOR when there is so much fear to go around. The sellers typically exhaust themselves over a period of time and the market rebounds.

We have been saying for months now is the time to pick up those companies which you didn't want to chase last year.

Note: The above is for information purposes only. Any decision to buy, sell or hold a specific investment should be reviewed by your own portfolio manager.

Happy Fourth of July

Fireworks are a common tradition when celebrating the July 4th holiday.


For over two hundred years the United States has stood as a beacon of light, hope, and freedom for the rest of the world. This so-called "experiment" of people actually governing themselves has withstood the test of time. This idea of democracy was unheard of when it was implemented by a handful of business professionals and ministers when they announced the Declaration of Independence to the rest of the world in July, 1776. We were the outcasts nobody wanted. Wars, civil unrest, culteral revolutions, recession, and depressions have come, gone, and returned again. Our nation remains.

Is our nation perfect? Of course not. But we are still the best nation on earth. If you doubt this answer then simply ask yourself: For what other nation do multitudes of people continue to risk their lives just to cross our borders to live here?

Our strength is in our diversity. Our weakness is in our diversity. Over the years Americans have pulled together through the tough times. We will do it again and again. It is when we are not united as a people that we are weak. Feelings of hatred, bigotry, prejudice, injustice all serve to divide us. Our enemies know this so they strive to perpetuate this even in our own midst. Yet, our enemies secretly long for the freedoms which they see us have.

Let us not forget our heritage, especially this year. Let us not forget our Creator, as mentioned by our forefathers in their (our) Declaration to the rest of the world. Many will say times are tough this year. We as a nation will rise above it and overcome. It is what we do as Americans. We have done it before. We will do it again.

Happy Fourth of July. And God bless the United States of America.