Weekly Commentary -Feb. 1,2010

The next few months will prove to be much more volatile then the last few. The markets have proven that Newton still is alive and well. But they managed to grab hold of a safety line today. If they manage to get a foothold they still can regain some lost ground back to the 10350-10450 area. If not, they will roll over fairly quickly to 9600...the last safety line...anchored by the Oracle of Omaha himself back in early November. Once we break 9600, things will get interesting pretty quick. The downturn in the markets should coincide with the dollar firmly breaking out above 80...target still remains -90. Concurrently, the EUR/USD could potentially be testing the 131 level, or at the very least be well on its way. Commodities had one heck of a rally in '09... but in 2010, much of that gain will be given back...thanks to 2010 being the year of the dollar. Once gold's rally is exhausted, 1120-1160, it will break closer toward $1000. Before this bear market is over, the government will be forced into action...this time to save their own jobs...but to no avail. -Dio.