Sell into the Summer Strength

When you visit here please remember you are getting the news about a year before it happens.

Remember my treatise of April '09 on the coming double bottom? It was hard to see then with the stock market roaring back after its March '09 lows. Even harder to see when we were all getting real "giddy" in December of '09. But here is comes.

This past April, I encouraged everyone to keep an eye on their country's bank statement. After all, it is your money.

Well, based on the June 30th report from the US Treasury, it looks like we might just tip over the country's legal debt limit before the November 2010 elections. Its a close call.

Also, on July 1, 2010, the Congress of the US decided that they are not going to publish a budget for fiscal year 2011 which starts in September 2010. Never before -- since the creation of the Congressional budget process -- has the House failed to pass a budget, failed to propose a budget, then deemed the non-existent budget as passed as a means to avoid a direct, recorded vote on a budget, but still allow Congress to spend taxpayer money.

Should be an interesting 2nd half of 2010:

• A new supreme court justice (life time appointment btw) that was never a judge,
• A war that cannot be won (war on terror),
• A problem that cannot be solved (climate change),
• Growing disregard for the "rule of law" by the government,
• Politicians who cannot lead without spending,
• $955B in stimulus spending that didn't stimulate ($168=Bush;$787=Obama),
• An ecological disaster (Gulf of Mexico oil spill) that will not be re mediated,
• A central bank (the Federal Reserve) which has exhausted all its monetary "tools",
• Banks that won't lend,
• Consumers who won't spend unless the government subsidizes the purchase (home buyer rebates, cash for clunkers programs, etc.),
• shall I go on?