Here the link to our June 11 letter:

http://www.edwards-magee.com/?p=2862

And here is a quote from the letter:

“All the omens are bad — said the Delphic oracle to Cyrus…  The Dow Theory just threw off a sell signal, the long term trendlines from March 09 (!) are broken and today the Basing Point New High Variant 2 stop is taken out.  As is obvious the wave low Variant 1 stop is alive, but not well.  It is sweating bullets as it watches a train bearing down on it.  You can see it skulking just at the bottom of the chart.

Last time the New High Variant 2 stop was threatened we shrugged it off.  We have already taken it seriously in this case.  The breaking of a trend line of 26 months is  an event of major import.  And it will export major consequences.    This will not solve, but exacerbate the nation’s export-import problem.

It will also export major amounts of cash from your portfolio.”

Our students start reciting in unison whenever we talk about trendlines:  Bad things happen when major trendlines are broken.  Bad things are happening right now.  If you don’t like it call your Congressman and tell him to get to work putting people back to work.

3.4%  before breakfast?   If you still feel like eating breakfast — even if you’re short.  You will remember our remarks about being short?