IT'S WHAT YOU KNOW YOU DON'T KNOW...

I'm hearing so many reasons why no matter what the market rally has begun, that I am forced to look for alternatives.

Like our ominous reminder of the old Wall Street adage last April, "Sell in May and go away" brought in the biggest decline in decades, today I'm forced to remind those that are either unaware or sippin' too much denial koolaide of an even older Wall Street adage, "buy the rumor, sell the news"!

Only moments after the biggest election day rally in decades ended, the naysayers began speculating about how bad a super majority of Democrats would be for the markets, and bla bla bla. If any of the reasoning even mattered, it might be interesting to listen to. But, it doesn't. Connecting thoughts or reasons to past events or future possibilities is a waste of time. If not that, then what?

Well, the strength of our decision support system is really two fold. First, it engages the only predictive market theory known to man (but typically misunderstood, therefore under utilized), which is the Elliott Wave Theory. Second, in addition to its ability to forecast what IS going on, Elliott Wave Theory reigns supreme in telling its disciplined students what IS NOT going on.

What IS NOT going on right now is the birth of a new bull market to new all time highs. What IS NOT going on is the salvation of the economy and markets by President Elect Obama.

What IS going on, based upon our decision support system, which leans heavily upon Elliott Wave Theory, is a relief bounce, which could be already over, to suck in more "little guy" buyers, so the Wall Street Insiders can sell the stuff they need to, before the next debacle hits.

Wall Street adage number three of the day: "Watch what they do, not what they say". THEY are deleveraging, THEY are selling, THEY are preparing for lower, much lower, prices in the months or years to come.

Whomever wins tonight, and it looks like it'll be Obama, God Bless the President of the United States, and more importantly, God Bless the people who pay for the mistakes, but receive no benefits for the egocentric actions of those we elect to govern and look out for us. As Obama says, "change has come to America". Let's hope he really does what he says he'll do. It's been awhile since we had a savior, but we're ready!

For what it's worth,

Ken