Gloom and Doom Scenario from Peter Schiff

Here's some straight talk from Peter Schiff about recession, oil prices, best sectors, unemployment, and bailouts. This may be good reading for those who think this bounce is the end of the market decline. I am willing to bet it is not, but I see a market rally tomorrow due to tonight's news of an auto bailout.

This bailout news coincides nicely with the Cheetum Market Indicator (are we familiar enough to call this the CMI?). This indicator, also referred to as the Cheetum Method, is rumbling to life. Since October 15th or so this indicator has given the sell signal. This means buy the QID, set the trailing stop, and collect the profits. Now I am seeing early signs of a possible buy signal which says buy the QLD. I am anticipating here, and anticipating the signals is not recommended. I am just looking forward to proving this method for a second straight year. So no monkey see monkey do business!

In a future post, I will explain the best way to set stops when using this method. A trader's 'touch' was necessary to capture profits from the wild swings during this volatile period. Relying solely on the mechanical buy/sell signals would mean leaving much profit on the table.