Will the Market continue uptrend?

The markets traded and opened higher on Friday, as we had rallies all around the market. With Greece Default expected we had news that Greek Bond Holders would see a 75% haircut , CDS (Credit Default Swaps) would be extended, but call it what you may Moody and Fitch still downgraded Greek Bond Ratings from Ca to C. The likelihood of default or not the European outlook worsens as the U.S markets struggle to keep Dow above 13,000. We are not saying a crash is coming but we believe a cycle date should be in the next few days quite possibly March 13 2012. We may see the markets take a 3-5% drop as the U.S dollar strengthens. The markets inflate on a weak dollar, since Dec 19 the U.S Dollar has been weak , therefore inflating the markets along with commodities like Gold,Silver and Oil, but since then the dollar has caught a bid yesterday seeing as high as 22.29 a dollar up from its previous close. The U.S dollar is currently trading over its 50 Day moving average and its relative strength index is looking strong for rally, even with a stronger dollar yesterday the markets still rallied somewhat because of non farm payroll exceeding expectations , yet at the end of the day markets took somewhat of a dip , showing a bearish sentiment not testing its high or closing above 1,380 in the S&P

UUP (US Dollar Pro Shares) 22.26 http://stockcharts.com/h-sc/ui?s=UUP

Recently I had a conversation with a member on whether the Speculators such as Gold and Silver Bugs are the reason for the decrease in the U.S dollar. That is totally far from the truth the dollar inflates according to the Federal Reserve and liquidity of the Dollar. The markets are pumped with liquidity in order to keep markets going it devalues its currency, therefore propping assets and financial markets to float higher. A weak dollar for investors is essential for there paper assets to inflate and go higher , bringing profits for the investors, this is a manipulation that is used to give false feeling of a growing economy. Inflation causes regular goods to go up in price, as the purchasing power of the dollar decreases this is the Keynesian thought process, for people that are not investors or are savers they are hurt the most as they pay increasing taxes and also pay "Hidden Tax" . The "Hidden Tax" is inflation. The purchasing power of your money decreases you have same pay same taxes yet you pay more for Gasoline, Gas and Oil play major role in food prices as most of the food in markets are transported. The trucks used in transportation and also the oil/energy used to make these products cost more as a weak dollar drives the price up. So the cost of things go up and your pay stays the same now some of you may invest in 401k,CD's or IRA Roth which are low risk investments , but one must understand that the Federal Reserve has Interest Rates artificially low close to .1% , so with the rate of inflation you are in a bad long term investment as when you are able to take your money from Investment without a penalty is after long period of time, that money loses value or purchasing power because of the rate of inflation.

With that said , how do you hedge yourself against inflation? Well buying real tangible assets like Gold and Silver is a great step to solidify your wealth. But for now we have told members to wait as we believe that the Commodity Charts in Gold and Silver since Dec 19 have gone up considerably in Silver alone had a 40% gain and now since retraced a bit, with re-election we could very well see an inflation rally but with expected "October Surprise" and SLV contracts being shorted at $36 range I think that we could have a buying Opportunity for metals in the latter part of the year. However If you are a long term investor and you like to accumulate or "stack" average down its entirely up-to you just don't get nervous on a pull back and get shaken out of your position as I believe this drop may be the very last drop we see in the Metals.

So how do we make money in this economy , the markets are like a roller coaster and objective is to ride the wave , if the market is bullish , you trade a stock that is bullish in that sector, or a chart that is in an uptrend you possibly add calls, for now we are seeing that the markets look over cooked, a market that is overbought we can hedge on down move:

OPTION CALL IDEAS

SDS (Pro Shares Ultra Short S&P 500) 15.94 if we buy calls and average here for monthly April or  May we could stay in the money and make some profits on SPY down move , I have been telling members that adding SDS when SPY is 137.80-138.20 could be a nice strategy , because SPY has yet to close over 138.20 , I do not think SPY wil close above this next week and will be looking to add the SDS here. Adding SDS in the money 15-16 Calls for April and May could be a handsome payout if the market drops

QID (Pro Shares Ultra Short QQQ 100) 32.93 if we buy calls and average here for monthly April or May we could stay in the money and make profits on QQQ down move, the QQQ has been on huge move since Dec 19 riding the back of AAPL,IBM , MSFT , If volatility comes in the market and AAPL takes a big hit the QQQ will have a sizeable drop , keep an eye on QQQ 65.50-66 range to add the QID for MAY and APRIL maybe a strike price 34-35

HEDGE ON DOWN METAL MARKET

BOM ( Deutsche Bank Base Metals Double) 11.50 we mentioned this one at 10.50 , with metals expected to drop this year buying shares of the BOM could easily go 30-50% by end of year look to add a position and sell for some profits , when Copper and Silver fall this goes up , when it does and Silver is cheap members can take profits and then buy Silver at lows , expected time frame September

http://stockcharts.com/h-sc/ui?s=bom

CHART Breaking down
XOM (Exxon Mobile) 84.36 we told members to look for the close below 85.48 the stock just broke support and could possible re test that 200 day moving average $78 , chart looks very weak , with a down market this could drop fast

http://stockcharts.com/h-sc/ui?s=xom