Big And Pretty

Friday's intraday reversal was good for almost 10 points but closed weak. This morning's futures are under pressure as a result, and I have my eye on lower areas, specifically the July 26th low of 1676.03. The Dow broke this level last week.

It is important to note that there is plenty of room below current prices should the market want to probe lower. The 50-day moving average and the 38% retracement are at the 1650 area.

It doesn't look like the market has exactly ripped into August options expiration as I thought it might. I was looking for a final wave of euphoria then a slow sell off that might have morphed into a cascade. Now I'm revising my outlook.

Even with a probe to 1650, the market seems to be correcting in time. Therefore the longer it stays sideways, it should be viewed as gathering stream. I still have a higher Fib target at 1778 which is well within reach. I love Marc Faber, but hearing him come out with his October crash scenario makes me think the market may have other plans as it so often does.

Here's a shot from a weekend trip up to Camden, Maine. I was struck not only by the size of this beautiful beast, but by her name and hail port. No US flag for her owner. She is Sovereign from the common-law jurisdiction of the Cayman Islands.

Same for this beauty too. Islandia out of either the Caymans or the BVIs, same difference. Places where taxes are in their original form of being indirect or excise taxes and not direct taxes on one's labor. Must be why these beauties are so big and pretty. If that's what floats your boat.