Big Money is speaking... Are you listening?

This market, in my judgement, has already declined past reasonable downside targets without showing signs of bottoming. The government is concerned. That's scary!

Foreign markets, with good reason, are reflecting our concern.

An uncertain political future has to figure into this. Or, perhaps, the market has already decided the likely political outcome and it doesn't like what it sees???

Either way, the market keeps demonstrating, over and over, that the emotions of fear and greed (and how we handle them) are what really determines our success or failure.

Sooner or later, bottoms are reached. Taking advantage of market psychology is what it's all about. No need to be the first one in. Big money, which tends to be 'smart' money, will tell us when.

The price action of HD, in my judgement, looks interesting.

Dow score card for the week ending 1/18/08.

DJ-30: 12099.30 -507.00 -4.02%. The Real World DJ-30: 49.61 -2.08 -4.02%.

UP: 3, Down: 27.

Trends (weekly charts): This is the subjective part.

Rising (Generally Higher Highs/Higher Lows) 1 (-4) 3%:

+*HD.

Consolidating (Generally Lower Highs/Higher Lows) 5 (n/c) 17%:

+*GM, +*IBM, JNJ, -*MO, WMT.

Declining (Generally Lower Highs/Lower Lows) 24 (+4) 80%:

AA, -*AIG, AXP, BA, -*C, CAT, -*DD, DIS, GE, HON, HPQ, INTC, JPM, -*KO, MCD, MMM, -*MRK, MSFT, _*PFE, PG, T, UTX, VZ, -*XOM.

+/- denotes change of direction.

* denotes change of category.