Fear Grips Market Stocks Fall Hard

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Selling pressure proves to be too much for the Stock Market as prices fall on higher turnover.

Every index had their short term trend lines broken on Tuesday as more fear about banks and the health of the overall economy gripped the market. The market is clearly foreshadowing Obama’s New Deal III will fail and its consequences of its existance will be great. Precious metals once again were the highlight of the day as flight to quality now flies to gold and silver. It is said the market looks 6 – 12 months in advance, Tuesday’s action spells doom and gloom for the US economy at the pace its going right now.

There is one stock out there that I believe looks halfway decent: SXCI. It had a pull back of 4% on lighter trade. Although its a large % pull back the low volume and manner it fell, orderly if it could head sideways a few more days would be a great candidate to get long. With that said, it is not the type of market where you would want to risk more than 1% of your capital on this stock. Far too many times have we seen better than average setups FAIL!

Gold, silver, and platinum continue to be the place to be. The massive spending and printing of the US Dollar only accelerates the crash of the US dollar. There hasn’t been this type of spending and printing in human history. In prior times, all fiat currencies fail after spending and printing of “monopoly” money. Only this time, we are doing at an unprecendented pace. This will lead to a massive rush towards precious metals as they are foreseen to have instrinsic value. I am long UGL and would like to get long AGQ and PTM.

Precious metals and Cash there is no need to try to pick bottoms in this market.

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Positions: UGL

Will the market be higher than now at the beginning of the second quarter?