Here it comes...

As I expected, the markets found significant resistance at Dow 7500 and is now selling off. Watch for the Dow to break 7140 and then 7000 in coming days. A break below 7000 could lead to significant equity downside. The coming commercial real estate crisis should lead to even more defaults in commercial mortgage backed securities, leading to even more downward pressure for financial equities. As it is, earnings season (which is approaching soon) should be terrible for banks as more and more writedowns are issued.

Also, watch for gold to make a strong move up in coming weeks. The Treasury's and Fed's recent actions are extremely bearish for the US Dollar and I suggest everyone have their money out of savings accounts, non-commodity based mutual funds, CDs, treasuries/bonds, and all Dollar positions and into precious metals, specifically gold and silver. A strong volume breach of $1000/oz should lead to significant upside for gold.

I think we have a nominal bottom in stocks either early this summer or early this fall. I don't expect a real bottom and recovery for years, though. Stay out of currencies and in precious metals. This is the beginning of the end of many currencies.