The Dow has been hit hard with selling, breaking through the key 11,600 support level I’ve been warning about. I said that once the Dow breaks 11,600, the bear is back in control and much lower prices are to come. That means U.S. stocks, and by default the U.S. economy, are going over the cliff. How low will it go? We need more fear in the market before a bottom comes and I see the Dow dropping to as low as 9,200 before a turnaround starts to take hold. Of course, it won't be a straight-down affair. There will be a lot of fake-out moves and with all the uncertainty out there, there will be a lot of volatility. The economic news is not good, and a lot of investors are very, very nervous, and rightfully so. What should you do? Be cautious. Stick ...

Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135. Imposing limits on speculation and other regulatory changes could reduce prices back down to the marginal costs of oil production,and the price of retail gasoline could fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy-futures markets, four energy analysts told Congress on Monday. More from MarketWatch.com: Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy ...

I hate to be the one to yell "FIRE" in a crowded theatre. But the time for keeping quiet has long since passed. The time for ignoring the gathering clouds of smoke is over. It's time to sit up, pay attention, and get your portfolio the heck out of harm's way ... because we have a full-scale, five-alarm, inflationary wildfire on our hands. Allow me to walk you through the overwhelming, undeniable evidence ... Import prices are soaring at an astronomical rate The government's policy of ignoring the dollar's decline is leading to astronomical increases in the cost of imported goods. In the month of May alone, import costs jumped 2.3%. That came on the heels of a 2.4% rise in April and a 3% increase in March. But the year-over-year comparisons are even ...

are in control of the short term trend. The Qs are at a potential support level but buying doesn't make sense until there are better signs of stabilization. The breakdown in the financials will likely keep pressure on the markets.

As I mentioned a few weeks ago, the Trade-Ideas 'krewe' will be headed to Phoenix for an Expo sponsored entirely by optionsXpress (details). I am an advocate of these types of get togethers between companies and customers because of several benefits each party receives.How Attendees BenefitAttendees get a chance for a deeper dive into a broker's offering, its pricing, its technology, and its partners (like Trade-Ideas! Yo!) - you wouldn't get near the same amount of information in a crowded exhibit hall with dozens of other vendors shouting.More time is allowed for question and answer both during the session and afterwardsThe sponsor is also more attentive of customer suggestions and open to resolving any customer issues - that's what can happen when there are no distractions from the other vendors.

How the Broker Benefits

The sponsoring broker gets to control the message - no competing with dozens ...