Short Term Review

The latest Short Term Review has been posted to the website (www.wminsights.com). Below is the the "Plain English Summary" from page 1 of the report.

Stocks: We think there is a strong case to be made that last Monday’s high could prove to be the peak for the year. At the least, the current evidence suggests that it should be one of the three or four most important inflection points of 2010.

10-Year Yields: We will have to be alert to the possibility that yields will ultimately be positioned for a test of the October-November double bottom at 3.175%.

US Dollar: The dollar’s pattern from its November 2008 high is a corrective structure, which means that the rally leading into that high should prove to be the first leg of a larger uptrend. If so, then the upside potential in the months ahead should significantly outweigh the downside risk, even allowing for a test of the recent lows.

Commodities: Any further pressures are likely to carry gold to new reaction lows that, in turn, would translate into a confirmed downtrend. The weight of the evidence favors lower lows for oil over the near to medium term.

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