Stars Aligning

This A.M, it seems that the stars are aligning for a major move in the markets. The DOW has just poked through for an all time record. The USD index is trading at 81.60, dangerously close to the all important 81.50 level, and gold is trading near $690 /oz, which is the last resistance level before $720 /oz.

I know the stock market highs is contradictory to the final two statements. Well the idea here is that, before a market turns down sharply it can be very bullish and often reach new highs. This is true for any market, not just the stock market.

You know the story regarding the USD index and gold. It is also important to note that if the dollar tanks further, it will be quite terrible for the stock market. Also, today the the CPI rose .6% in March which was a very high jump. The reason was given to high food and energy prices. DUH!! I recommend that everyone stay tuned