The Dow-Jones 24,760 and up 70. Here's what you might expect from a rally based on some history. A great chart! Silver and its "MYSTERIOUS MOVEMENT". JPM is up to something. STATMAN COMMENTS.

Good Monday afternoon my friends.

The chart above is compliments of Jason Goepfert the Sentiment Trader. You all know I am a huge believe in understanding market Sentiment and how it relates to market movement. Sometimes it is so obvious to me. And you have seen(if you've followed this blog) A call about one day before the plunge over 20 days past, CAUTION and our sell about 1.5 % from the top of the market in mid Sept. Also the sell in January a few days before that decline and a "bottom call" in April! We have studied market sentiment and applied it for almost 40 years.

Just look at the chart! Dumb money right now is buying put options just like they do at major bottoms. And, to a greater degree than they did after the January almost 10 per cent selloff. Interesting to me is that Goepfert's work show them (dumb money) more bullish in January than they were in early October! My work coincides, incidentally.

Almost always, says Goepfert, these types of readings result in an almost 6 % recovery over 90 percent of the time! Well I said just Saturday I would expect perhaps a rally to about 25,500 (off the 24,500 level at the time!) Amazing!

Now let's see if it lays out. Let be be up front as I always am....I'm not playing it. I believe we will see considerably lower prices later. My shorter term trading days are over, thank you.

Now to the Mystery of the silver and gold market. Theodore Butler writes of this in an article on www. silverseek.com.

As I pointed out as well Saturday ( I believe). the Commercials shorted quite heavily last week after being in a very strong long position. This expected weakness will prove another buying opportunity. Morgan shorted and is NEVER without profit. At the same time they are amassing an absolutely massive position in physical silver. I wrote of this months back.
Morgan is believed to have amassed 147,000,000 oz. of silver in its own warehouse and is believe to have hundred of millions of ounces out of the country. So Morgan shorts paper silver and gold for profits while continually adding the metals to their private (and enormous) stockpiles. To me it is not a mystery. I was at one time quite close the the crooks of Wall Street. They are going to "let it fly" and soon. And China? If you think they are fools, think twice.

Take advantage of any weakness you see short term.

Have a great week! Thank you....