Weekly Update 04-19-2010:

Last week we mentioned that the extreme overbought situation could be the environment in which any further excessive push from the market in the attempt to exceed the 11000 mark on the Dow and 1200 on the S&P500 could be the “kiss of death”.  Sure enough last week the markets pushed to an excessive “top” on Thursday to close the S&P at 1211 and the Dow at 11144.  Then on Friday there was an announcement by the SEC that they were charging Goldman Sachs with Fraud for their conduct in regards to sub-prime mortgage security disclosures.  The market reacted with a huge selloff on Friday wiping out most all of the gains for the week and very possibly creating the “trigger” event for the “dominos” to begin falling creating a longer term corrective process for the market.  This week should add another interesting “chapter” to this process.  We will maintain our SELL position and keep you updated if that needs to change.  Yours for Safe Sailing in Bull and Bear Markets.