FROSTY FUTURES THURSDAY AUG. 5.

FRIDAY AUG 6.

DOW R=10025; 10060; 10093. S=9914; 9790; 9716; 9652.

SPX R=1088; 1092; 1095. S=1070; 1066; 1062.

NDX R=1398; 1420; 1441. S=1321; 1299; 1279.

USU R=10919; 10931; 11009. S=10816; 10803; 10723.

GCV R=396; 399; 402. S=386; 380; 376.

SIU R=683; 702; 711. S=664; 657; 648.

DXU R=9033; 9053; 9064. S=8950; 8923; 8885.

CLV R=4390; 4429; 4450. S=4320; 4299; 4278.

SX R=585; 599; 613. S=565; 556; 547.

CZ R=249; 251; 262. S=232; 229; 225.

WZ R=338; 344; 349. S=331; 328; 323.

COMMENTARY

INDICES

I think the market is going to continue to decline because the current administration is in decline. One of the primary reasons for this is the fact that a major social strategy used by Republicans has been exposed and is coming to the forefront in the race. That strategy has been the use of "cultural" phenomena to distract the working class (historically a Democrat bastion) away from economic issues. When one takes polls within working class areas of cities and farm areas, some of the "most important" issues are cultural issues such as abortion, gay rights and gun control. These areas are, almost without exception, Republican enclaves. Economic issues have been relegated back-seat status as though they don’t count, or count for very little. As though one’s soul is more important than one’s belly, house, car and future. And, of course, to those with a conservative mindset, this is unalterably true. Be that as it may, it has begun to dawn on some of that mindset that with all the wealth around perhaps it is possible that one’s soul can be saved without sacrificing so much to the Corporate God of Capitalism. This phenomenon is of recent vintage. Remember the old adage to wit, "You can fool some of the people some of the time, but you can’t fool all the people all the time." Smart money has already recognized this and they are pulling money out of the market. Obviously not all at once, but in a steady fashion I expect to continue for the foreseeable future. Good luck, Mr. Greenspan.

So where does all this cash go? Safe havens, of course. But which haven is safe? Interest rates or metals? Real estate or commodities? Let me know what you think.

Best to all,

Bill

CONTACT ME: williamfrost@comcast.net or call 615 331 8567.

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Trading futures is for individuals willing to assume greater risk for the opportunity of greater rewards. Only speculative capital should be used. Past performance is no assurance of future profits. Information contained herein is believed reliable but original sources of data have not been independently verified therefore is not guaranteed. Ideas and suggestions are the opinion of the writer and are subject to change at any time. Nothing herein should be construed to be a solicitation to trade futures or options. Hedgers should have a defined plan.