Pre Market TAO Mon 8-17-09

Looks like Mr. Market is beginning to make a move out of this 12 day consolidation period to the down side.

Asia started to sell off overnight and Europe followed.


It looks like the Michigan Consumer confidence report Friday was the final straw that broke the camels back.

I expect the bulls to interpret this as a pull back and buy the dip.

The Spy and QQQQ will open Gap down big.

This Week will show us the better picture of overall direction though the next month.

The Banks are not really getting better. We Started out the summer with 95 regional Banks in trouble and now we are up to 300 + ... The consumer is not getting stronger and retail reports are pointing to a real drop in the last week of the month in purchases.

China is done with the restocking of raw materials and the orders to Chinese mfg is not increasing.

The Shanghai market has rolled over with a double top pattern....

I Think if the US Dollar continues to gain strength we are in for a return to the down side.

My plan to day is to sell the open and wait for the sell off to lose strength and Buy the Spy dip into the 2 hour of the session.