Sunday Post

Hello All,

Hope everyone had a good and restful weekend.  Today's commentary focuses only on the S&P500 and the DXY.

The "gist" of the S&P 500 is that there is much "tension" building up in the price action.  One gets the sense that we're about to witness some violent price action this week as the "triangular pattern" gets resolved one way or another.

The key support and resistance in the week ahead will be the 1329 and 1350, respectively.

The Dollar has witnessed a fairly powerful and impressive move of the lows.  It looks like only the beginning of at least a "few weeks" move higher.  One should be looking to buy the next decent dips there.  74.40 and 74.00 would be nice levels to buy in front of in case we do get a dip.

SP500 and DXY Commentary 15May11



Addendum:

Of all the various links and articles I read this weekend, this one stood out as a must read:

The Failure of American Schools written by Joel Klein who was Chancellor of NYC's School System for several years.  It's quite revealing and very "blunt."  It's a longish article, but it really is an amazing one if you want to understand some of the problems facing the Educational System.

Some of the "money" paragraphs:

"As a result, even when making a lifetime tenure commitment, under New York law you could not consider a teacher’s impact on student learning. That Kafkaesque outcome demonstrates precisely the way the system is run: for the adults. The school system doesn’t want to change, because it serves the needs of the adult stakeholders quite well, both politically and financially."

"In short, politicians—especially Democratic politicians—generally do what the unions want. And the unions, in turn, are very clear about what that is. They want, first, happy members, so that those who run the unions get reelected; and, second, more members, so their power, money, and influence grow. "

"Yet, rather than create a system that attracts and rewards excellent teachers—and that imposes consequences for ineffective or lazy ones—we treat all teachers as if they were identical widgets and their performance didn’t matter."

"Public education lacks both kinds of accountability. It is essentially a government-run monopoly. Whether a school does well or poorly, it will get the students it needs to stay in business, because most kids have no other choice. And that, in turn, creates no incentive for better performance, greater efficiency, or more innovation—all things as necessary in public education as they are in any other field. "

 Amazing....