Today I have a special guest blogger, Doug Greene from Tomorrows Newspaper. I have personally read a lot of Doug's posts over at his blog, and I can tell you that the information he provides is very helpful. In fact the most recent post over at his blog shows just how successful his stock picks have been in the past year. I have tracked many of his picks, and wish I had bought in on more of them myself. Doug does a great job trading through trends and technical analysis. I encourage my readers to make it a habit to check out Doug's blog as often as possible. 
Below is the guest post he submitted for GrowYourFunds regarding the current state of the market.
These past few months have been extremely volatile; I think we all can agree on that. With rising Oil prices, Gold soaring to $1,000 and much of industry’s credit products in a standstill; it is easy to see why this next Fed meeting is almost irrelevant. Wait did I say irrelevant? Correct. There won’t be a major panic or relief reaction to the decision this week because the markets aren’t dependent on it. The rates have been slashed in the past and now we just need to let the credit and housing problems work themselves out. Now don’t get me wrong, there will be higher volumes and more trading than usually on Fed day, but overall I think the market has already decided where it is going…and that is up.
The major indices have all broken out of classical textbook trading ranges about a week ago. With nice volume and decent price action, I think we have formed bottoms in the S&P 500 and the Dow Jones Industrial Average. This is part of being a good trader: not falling in love with any idea of bullish or bearishness. Next time somebody asks what you are (bull or bear), ask them why it is relevant considering it can change on a dime because you are a disciplined investor that leaves emotion at the door.
Over the last three months I have worked exclusively on volatility measures and directional proprietary indicators, most of which have made tons of money for reader at Tomorrow’s Newspaper. Coming into this year these indicators gave me reasons to be bearish on the economy and markets as a whole, now I have changed my view on things about a week or two ago when the markets stabilized. More recently, my measures are indicating that the markets will move higher on a short term basis. Crude Oil has put in a top and should trade back to $110 short term. Gold…is in free fall so don’t touch it. I am neutral on the grains as they have backed off quite a bit from their highs and could possibly see a snap-back rally. With these predictions in place, I cannot see how the dollar and stock market won’t trade up over the next few weeks.
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