Overall Market Analysis

It looks like now is time to be short on some of your positions. The market has shown strength in the last couple of weeks, but it appears that it is now correcting itself. After dropping 260 points on Thursday and Friday, the market recovered a bit today. However, it appears that this rally will be shortlived; there are still oil concerns (problems with Chavez and in the middle east as usual), and with the increasing gas prices comes concerns of inflation and another upcoming rate hike by Bernanke. Also, the Hurricane season is coming up as well, which could be further bad news for the economy and for gas prices.

Technically, the Dow Jones appears to be ok. You can see that the uptrend is still in tact and the Dow remains above the 50 day moving average.

However, the fundamental news suggests that the drops are not yet finished. Because of this, I would suggest having at least one short position in the weeks to come.