State of the Market

I continue to believe that Equities are in the process of putting in an intermediate-term bottom. DAX currently at 3637; NASDAQ at 1066. I see bounces of at least 15% from these levels, which would give us a very modest DAX 4150, around 50% retracement level of the drop from February 2009 highs. The Bund is also looking toppy here are 125.35, rallying up in a five wave move from 4 March 2009 123 low. Finally, the USD looks set to weaken substantially, and currently, among the majors, the CHF is leading (USD/CHF 1.16). I expect to see that cross below 1.04 very soon.