With the recent market action there has been a marked increase in the indicators that I follow that reflect the fear in the market.   That is indeed unfortunate for the many as it produces irrational and emotional behavior which is very bad for one's financial health and well-being.

There are just two phases in the market that are very, very important, to wit; 1. When "powers that be" want to exchange their stock for your money (the high in the indices) and when these same people want to exchange their money for your stock-PERIODS LIKE RIGHT NOW.  There is nothing more delightful for them than to have someone sell  EVERYTHING and run away only to return later and buy from these people at much higher prices.

MONEY WILL ALWAYS RETURN TO ITS RIGHTFUL OWNER.

There are so many things that are obvious to me.  The price of oil at $147.27 could not be sustained and was only the product of speculation.

Bill Miller, of Legg Mason fame, that manages many Billions of dollars had this to say recently:

             "I do think some things are obvious: it is obvious the credit crisis will end, and it is obvious the housing crisis will end and that credit markets will function satisfactorily and house prices will stop going down and will start to move higher.  It is obvious that the American consumer will spend sufficiently to keep the economy moving forward  long term.  It is obvious that the U.S. economy, already the most productive in the world, will get even more productive and will adapt and grow.  It is obvious STOCK PRICES will  move higher in the future than they are now"

To this I would add:   It is obvious, 1. That the infrastructure of this great nation is in desperate need of repair.  2. Railroads will become the new number one in transportation (once Again)  3. There is an urgent need to repair/build new railroad trackage.   4. We cannot function as an economy without airlines and they absolutely MUST buy new aircraft.

These are but a few of the many opportunities that I see.   However, one must know when to be patient and bide your time. 

Remember "knowledge allays all fear"

There are many specific targets that I have, but this site is read by many that are not our clients.  If you want the names and facts just give me a call.

Now to the market.   Expect a few more weeks of chop right here.  This always happens when new leadership is being chosen.   By late September (24^th thru 30^th) we should see a real sustainable move upside.

Watch the transport index as I am quite sure it will move first and then drag the rest of the market with it.  Focus on the 5322.48 level.  When we clear that level on heavy volume we should see some real solid advances across the board.

Thanks for reading-I need to get back to some deep research that I am working on.

Regards,
Jack