Downtrend still in effect

Even though the market rallied strongly yesterday, the S&P did not go above 1225. This is not to say that it might go above it next week. But today the market ended at 1199 so we are still in a downtrend. The market today was tepid, only rising about two points. We would like to think that wave 2 is over and that wave 3 has begun. Time will tell. The market can be perverse and can always rise to a new high. My strategy is to remain in cash or short the market.

On another note, the Euro could be in trouble. It is a house of cards. Once one nation defaults, the whole Eurozone could fall apart. The Irish could use cash to bolster their economy. The Eurozone wants to give them more money, but at a price. I hope the Irish see the new money as a Trojan Horse. They should not give up an inch of their hard fought nationality. Their main incentive for the US to set up businesses there is the low low corporate tax rate. The The Irish must keep this advantage. My humble advice to the Irish is to go it alone, keep their low corporate tax rate. Default if you must on the debt. Screw the Germans, French and the English. Up the Irish!