I’m seeing short-term tops forming right now

They should also go after the bottled water companies. After all, bottled water
prices are very high. Why not then go after Starbucks
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the price of my favorite White Chocolate Mocha?

Why didn’t these politicians go after the high price of Beanie Babies when they
were all the rage? Do you know how much money I spent on those stupid stuffed
animals? How about NIKE
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am paying an average of almost $100 to make my kids happy with their cool NIKE
sneakers.

In fact, let’s just tax every company that makes too much money. That way, we
can give more money to our politicians so they can build a bridge in Alaska for
$300 million that helped out a couple of hundred people. That way, we can just
stifle innovation as well as R&D. You see, you tax to much, you remove
incentives for people and companies to do more and to do better. Or maybe we can
listen to a certain socialist from Vermont who wants to just pick a market
price…and just put all the OIL companies out of business.

Sure…price controls have worked real well in the past. Do these politicians
ever learn? The amazing story behind this is that the government makes a ton
more in taxes from gas on a percentage basis than the OIL companies…and they
just want more.

As usual, our government is now reacting to a problem instead of seeing the
potential for this problem years ago. Our government has been the problem…not
the OIL companies. They have made it impossible to build new refineries because
of environmental, regulatory and cost issues…but let’s just blame the
companies. I believe some of these politicians should headline the next edition
of the Pravda. The only thing going on here is that politicians are pitting the
little guy against the big bad OIL COMPANIES. There is nothing politicians can
do and they know it. Just another excuse to curry votes and raise taxes on
someone.

Bulls have got to love and bears have got to hate that so far…

In spite of $75 OIL…in spite of 15 FED rate hikes…in spite of Iraq…in
spite of Iran…in spite of higher rates on the long end…in spite of
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spite of
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Mussolini…the major averages refuse to correct even a smidge…and as we have
said many times, until major averages break support, they get the benefit of the
doubt. Do keep in mind that even though market are near new highs, the internals
of this market have definitely not kept up…and will eventually come back to
haunt things if internals do not get better.

I wanted to be short but sweet with COMMODITIES…hey why not? Most have done
the parabolic thing. In fact, some names are doing the 1999 internet thing.

GOLD’s action in the past few days reminds me of a near term top. Normally, when
something goes up very far, very fast…and then whips around, it is time for a
rest. GOLD went up $40…down $25…up $15 and down $15…all in a few days.
This does not change the longer-term bull market…just some short term wiggles.

OILS are also due to pause/correct. The
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weeks. Once again, any correction would be normal and doesn’t change the
longer-term bull market in OIL.

STEEL, ALUMINUM, COPPER…are also in the category of needing a pause as they
are way above moving averages after the recent parabolic move in the COMMODITIES
market.

We would concentrate on these areas but only into pullbacks. Pullbacks are a
normal occurrence in bull moves…just be patient. Risk has picked up BIG TIME
in the past few weeks.