Long Gold: Short Gold Stocks:

 This portfolio was started 12-1-2006 with a holdings value of  4.88

Name	Symbol	Shrs	Gain		Holdings Value
-	1-Dec-06	41.12	-3	-113.16$-113.16	MKT VECT GOLD MNRS	GDX	-3	$10.20	8.27%	$-113.16
-	1-Dec-06	64.12	2	123.30$123.30	STREETTRACKS GOLD TR	GLD	2	$4.94	3.85%	$123.30
-	-	-	-	-	-	$$CASH	-	-	-	-
-	-	-	-	10.14$10.14	Total (USD):	-	-	$5.26		$10.14

Long Gold: Short Nasdaq
This portfolio was started 1-4-2007 with a holdings value of  61.48

Name	Symbol	Shrs	Gain		Holdings Value
-	4-Jan-07	61.65	6	369.90$369.90	STREETTRACKS GOLD TR	GLD	6	$0.00	0.00%	$369.90
-	4-Jan-07	44.06	-7	-308.42$-308.42	NASDAQ 100 TR SER I	QQQQ	-7	$0.00	0.00%	-308.42
-	-	-	-	-	-	$$CASH	-	-	-	-
-	-	-	-	61.48$61.48	Total (USD):	-	-	-	-	$61.48

Long Gold Short Emerging Market
This portfolio was started 1-4-2007 with a holdings value of  19.50

Name	Symbol	Shrs	Gain		Holdings Value
-	4-Jan-07	113.00	-2	-227.10$-227.10	ISHARES MSCI E.M.I.F	EEM	-2	$1.10	0.49%	-227.10
-	4-Jan-07	61.65	4	246.60$246.60	STREETTRACKS GOLD TR	GLD	4	$0.00	0.00%	246.60
-	-	-	-	-	-	$$CASH	-	-	-	-
-	-	-	-	19.50$19.50	Total (USD):	-	-	$1.10	5.34%	$19.50

II.  The question comes up: is this just a "correction" or is there some more significant here?
Unfortunately, what has started is not just a correction; rather the health care stocks and the health care REITS are leading the way Into The Age Of Financial Ruin.


III.  The Ides Of May was both a pivotal economic and political point
The Pivotal Economic Point:
• The Stock Market epitomized by the Russell 2000 Index (^RUT) peaked at $781 on 05-05-2006

• Gold rose to $712 as seen in the rise of GLD, an ETF, to $71 on 05-12-2006

• Non Edible Futures peaking in value the first week of May 2006 as shown by Mervs Non-Edibles Futures Page

The Pivotal Political Point:
• George Bush ordered the National Guard to the border of Mexico on May 15, 2005. This was an unlawful act, one not sanctioned by Constitutional Law, one in violation of the rule of law of Posse Comitatus and a de facto declaration of Martial Law. The Posse Comitatus Act is the U.S. statute prohibiting the use of “armed force” for law enforcement; its intent, purpose and application described quite well by Libertarian Gene Healy in ‘What of Posse Comitatus’ 

One Age has passed and another Age has commenced
The Past Age
The past economic age: Age of Prosperity
• where wealth came through credit expansion and soaring corporate profit

The past political age: Age of Constitutional Republics
• where one had inalienable rights of life, liberty and the pursuit of happiness

The Coming Age
The coming economic age: Age of Financial Ruin
• will see inflation roar as the value of real estate, stocks, bonds and the dollar become worthless. Eventually there will be a new global currency to replace the dollar.

The coming political age: Age of Tyranny
• will have ten regions of global governance as called for by the Club of Rome in 1974 each region will be a self enclosed homeland security state where the state and corporations combine to rule over the people

• will be one where the “philosopher kings" rule the world, a principle describe in Jim Lobe’s article: 'The Strong Must Rule The Weak'

• will operate under global principles such as those of Leo Straus and the Security And Prosperity Partnership (SPP) for subjugation of the peoples.

The Market is topping and gradaully turning downward, this provides an excellent entry point to short sell the stock market via both Inverse Mutual Fund Spreads and Inverse ETF Spreads as indicated below:
1) Inverse Mutual Fund Spreads
Spreads by Market Area

Long Short Spreads For Bear Financial Markets

Long Short Spreads For Bear Market Sectors

For example, Long SHPSX and Short UAPIX would have produced 1.12 gain on the long and 4.06 gain on the short for a total gain of 5.18% for the five day period

SHPSX - SHORT SMALL CAP PROFUND SERVIC (FUND)

UAPIX - ULTRA SMALL-CAP PROFUND INVEST (FUND)

DXD - PT ULTRSHRT DOW30 PS (AMEX)

DDM - ULTRA DOW30 PROSHRS (AMEX)

I.  Summary:
Evidence exists that the stock markets are peaking or have peaked today, Tuesday October 24, 2006 and that this presents the opportune time for short selling.
 
II.  A recent chart of the ETF IWM, which is an investment that seeks investment results of the Russell 2000 index suggests that the Russell 2000, like all of the stock market has peaked and that this represents an opportune time to sell stocks short
Chart of the ETF IWM

III.  Short selling can be done via inverse spreads -- by being long one investment and short another:

	Short the market spread description	Short the market spread URL	Basis Of Spread
	Long DXD and Short DDM	bc?s=DXD&t=3m&l=off&z=m&q=l&c=ddm	Financial market
	Long MZZ and Short MVV	bc?t=3m&s=MZZ&l=off&z=m&q=l&c=mvv	Financial market
	Long QID and Short QLD	bc?t=6m&s=QID&l=off&z=m&q=l&c=qld	Financial market
	Long SDS and Short SSO	bc?t=3m&s=SDS&l=off&z=m&q=l&c=sso	Financial market

IV.  The following analysis and chart from stocktiming.com email advisory of 9-19-2006 suggests the S&P 500
can continue to rise only if Volatility remains subdued; this report is very favorable to short selling and suggests the timeliness of taking action.

The VIX (Volatility Index) goes up, and the market goes down.
The VIX goes down, and the market goes up ... that's basically how the VIX works.

Below is an hourly VIX (Volatility Index) chart of what has happened since September relative to the S&P 500.

Note the slope of the S&P's support line and the slope of the VIX's resistance level.  This is exactly how they should be behaving with each other.

Note how perfectly the resistance levels have been hit on the VIX.  There were 4 exact hits on the resistance line.  Each time the VIX hit its resistance, it immediately retreated.

But now, the VIX's resistance line will soon squeeze all the way down to its support line.  As long as the VIX does not break out above the resistance line, it means that its rises will be lower tops than the previous rise. 

And, that means, that as long as the VIX stays within this triangle pattern, that the S&P can continue to rise. 

If the VIX rises above the resistance line, AND the S&P 500 breaks below its support line at the same time, then the market will pull back. 

V.  The chart of Long MZZ and Short MVV shows that this spread has been profitable for 5 trading days.


VI.  Finally, the reports from the following analysts suggest that the stock market is topping out and that this is the opportune time for short selling. 
A.  Richard T. Williams, CFA, CMT in A Chill in the Air writes: "We think the SPX is about to move in concert with oil and rates but in the opposite direction. Since the market has put up such a strong rally for the last couple of months a corrective pullback would be likely in any event so the real test will be the character of the downside. Bulls have run the table for so long that they will complacently give back some ground without a fight, until they realized that something else is happening, 
perhaps 5-10% down from the highs. Only then will they become worried and then fearful, the necessary ingredients for a bottom in stocks. It is for these reasons  that we expect a deep decline in stock prices rather than a shallow corrective pause before a run to new highs."

The ICAP Research 5-year Volume-adjusted Price Chart for S&P500 shows that for a new high on VAP, the momentum is strikingly weak suggesting a failure in the market soon.

(His earlier report concluded: Momentum is so far below VAP compared to prior rallies, that a return to the LT sell signal is likely soon)

B. Dominick writing on 10-15-2006 in Target Reached  relates: I still think that we’re late in the game and I have much more concern for a reversal, rather than worrying about missing the rest of the move, if there is any left. The trend is still up, which might not be the case on Monday 10-16-2006 or Tuesday 10-17-2006, but there is no confirmation of a turn at the moment. 

I.  Summary:
Evidence exists that the stock markets are peaking or have peaked today, Thursday October 19, 2006 and that this presents the opportune time for short selling.

 
II.  The Chart of the ETF IWM, which is an investment that seeks investment results of the Russell 2000 index suggests that the Russell 2000, like all of the stock market has peaked and that this represents an opportune time to sell stocks short
Chart of the ETF IWM

III.  Short selling can be done via inverse spreads -- by being long one investment and short another:
A-1.  General financial market inverse spreads

	Call Option Spread	Long SDS and Short KSECX	bc?t=3m&s=SDS&l=off&z=m&q=l&c=ksecx	Financial
	Dow Jones Industrial Average Spread	Long UWPIX and Short UDPIX	bc?t=1y&s=UWPIX&l=on&z=m&q=l&c=udpix	Financial
	Nasdaq 100 Spread	Long USPIX and Short UOPIX	bc?s=USPIX&t=1y&l=off&z=m&q=l&c=uopix	Financial
	Nikkei 225 Stock Spread	Long UKPIX and short UJPIX	bc?t=6m&s=UKPIX&l=off&z=m&q=l&c=ujpix	Financial
	Russell 2000 Spread	Long RYIRX and short UAPIX	bc?t=6m&s=RYIRX&l=off&z=m&q=l&c=uapix	Financial
	S&P 500 Index Spread	Long SDS and short ULPIX	bc?t=6m&s=SDS&l=off&z=m&q=l&c=ulpix	Financial
	S&P MidCap 400 Index Spread	Long MZZ and Short UMPIX	bc?t=6m&s=MZZ&l=off&z=m&q=l&c=umpix	Financial
	Utility stock spread	Long SDS and Short UPTSX	bc?s=SDS&t=6m&l=off&z=m&q=l&c=utpsx	Interest Rates
	Banking stock spread	Long SDS and Short BKPSX	bc?t=6m&s=SDS&l=off&z=m&q=l&c=bkpsx	Market Sector
	Basic materials stock spread	Long SDS And Short BMPIX	bc?s=SDS&t=3m&l=off&z=m&q=l&c=bmpix	Market Sector
	Biotechnology stock spread	Long SDS and Short BIPSX	bc?s=SDS&t=6m&l=off&z=m&q=l&c=bipsx	Market Sector
	Consumer goods stock spread	Long SDA and Short CNPSX	bc?t=6m&s=SDS&l=off&z=m&q=l&c=cnpsx	Market Sector
	Emerging market debt spread	Long SDS and short PREMX	bc?t=3m&s=SDS&l=off&z=m&q=l&c=premx	Market Sector
	Financial stock spread	Long SDS and Short FNPSX	bc?t=6m&s=SDS&l=off&z=m&q=l&c=fnpsx	Market Sector
	Health care stock spread	Long SDS And Short HCPIX	bc?t=6m&s=SDS&l=off&z=m&q=l&c=hcpix	Market Sector
	Internet stock spread	Long USPIX and Short INPIX	bc?t=1y&s=USPIX&l=off&z=m&q=l&c=inpix	Market Sector
	Pharmaceutical stock spread	Long SDS And Short PHPSX	bc?t=6m&s=SDS&l=off&z=m&q=l&c=phpsx	Market Sector
	Real estate stock spread	Long SRPIX and Short REPSX	bc?t=1y&s=SRPIX&l=off&z=m&q=l&c=repsx	Market Sector
	Semiconductor stock spread	Long SDS And Short SMPSX	bc?s=SDS&t=6m&l=off&z=m&q=l&c=smpsx	Market Sector
	Technology stock spread	Long SDS And Short TEPIX	bc?t=6m&s=SDS&l=off&z=m&q=l&c=tepix	Market Sector
	Telecommunications stock spread	Long SDS and Short TCPSX	bc?t=6m&s=SDS&l=off&z=m&q=l&c=tcpsx	Market Sector
	U.S. Mobile Telecom Index Spread	Long SDS and Short WCPIX	bc?t=3m&s=SDS&l=off&z=m&q=l&c=WCPIX	Market Sector

	Weakening MSCI EAFE Index	Long DXESX and Short DXDLX	bc?t=3m&s=DXESX&l=off&z=m&q=l&c=dxdlx	Weakening country
	Weakening MSCI Emerging Markets Index	Long DXESX and Short DXELX	bc?t=3m&s=DXESX&l=off&z=m&q=l&c=dxelx	Weakening country
	Weakening S&P Latin America 40 Index	Long DXESX and short DXZLX	bc?s=DXESX&t=3m&l=off&z=m&q=l&c=dxzlx	Weakening country
	Weakening country spread: Spain	Long UVPSX and short EWP	bc?t=6m&s=UVPSX&l=off&z=m&q=l&c=ewp	Weakening country
	Weakening country spread: Taiwan	Long UVPSX and short EWT	bc?t=6m&s=UVPSX&l=off&z=m&q=l&c=ewt	Weakening country
	Weakening country spread: Mexico	Long UVPSX and short EWW	bc?t=6m&s=UVPSX&l=off&z=m&q=l&c=eww	Weakening country
	Weakening country spread: Brazil	Long UVPSX and short EWZ	bc?t=6m&s=UVPSX&l=off&z=m&q=l&c=ewz	Weakening country
	Weakening country spread: Indonesia	Long UVPSX and Short IF	bc?t=3m&s=UVPSX&l=off&z=m&q=l&c=if	Weakening country
	Weakening country spread: India	Long UVPSX and short MINDX	bc?t=6m&s=UVPSX&l=off&z=m&q=l&c=mindx	Weakening country
	Weakening country spread: China	Long UVPSX and Short OBCHX	bc?t=6m&s=UVPSX&l=off&z=m&q=l&c=obchx	Weakening country
	Emerging Markets Telecommunications Spread	Long UVPSX and short XETFX	bc?s=UVPSX&t=6m&l=off&z=m&q=l&c=xetfx	Weakening country

The VIX (Volatility Index) goes up, and the market goes down.
The VIX goes down, and the market goes up ... that's basically how the VIX works.

Below is an hourly VIX (Volatility Index) chart of what has happened since September relative to the S&P 500.

Note the slope of the S&P's support line and the slope of the VIX's resistance level.  This is exactly how they should be behaving with each other.

Note how perfectly the resistance levels have been hit on the VIX.  There were 4 exact hits on the resistance line.  Each time the VIX hit its resistance, it immediately retreated.

But now, the VIX's resistance line will soon squeeze all the way down to its support line.  As long as the VIX does not break out above the resistance line, it means that its rises will be lower tops than the previous rise. 

And, that means, that as long as the VIX stays within this triangle pattern, that the S&P can continue to rise. 

If the VIX rises above the resistance line, AND the S&P 500 breaks below its support line at the same time, then the market will pull back. 

V. ProFunds Ultra Dow 30 Inv (UDPIX) manifested a P&F ascending triple top alert today; this is an investment that seeks twice the performance of the DJIA.

A. The chart of UDPIX showed a P&F ascending triptle top alert today
B.  Here is the one year chart of UDPIX from Yahoo Finance


VI.  Finally, the reports from the following analysts suggest that the stock market is topping out and that this is the opportune time for short selling. 
A.  Richard T. Williams, CFA, CMT in A Chill in the Air writes: "We think the SPX is about to move in concert with oil and rates but in the opposite direction. Since the market has put up such a strong rally for the last couple of months a corrective pullback would be likely in any event so the real test will be the character of the downside. Bulls have run the table for so long that they will complacently give back some ground without a fight, until they realized that something else is happening, 
perhaps 5-10% down from the highs. Only then will they become worried and then fearful, the necessary ingredients for a bottom in stocks. It is for these reasons  that we expect a deep decline in stock prices rather than a shallow corrective pause before a run to new highs."

The ICAP Research 5-year Volume-adjusted Price Chart for S&P500 shows that for a new high on VAP, the momentum is strikingly weak suggesting a failure in the market soon.

(His earlier report concluded: Momentum is so far below VAP compared to prior rallies, that a return to the LT sell signal is likely soon)

B. Dominick writing on 10-15-2006 in Target Reached  relates: I still think that we’re late in the game and I have much more concern for a reversal, rather than worrying about missing the rest of the move, if there is any left. The trend is still up, which might not be the case on Monday 10-16-2006 or Tuesday 10-17-2006, but there is no confirmation of a turn at the moment.