Doug Kass made news last week with his “market has topped“ declaration. Kass said that the market has more than likely peaked for 2009.  He believes the consumer is dry and can’t afford to spend money on anything but necessities. The retail consumer is the primary driver of the economy and responsible for some 72% of the GDP. With summer over and the home buying season over that will mean the consumer is going into hibernation for the winter. He also worries that taxes are going sharply higher despite campaign promises simply because of the rapidly rising Federal deficit.

Doug was one of the few analysts bold enough to call for a market bottom in early March during an appearance on CNBC.  Once again, keep an eye on the dollar as it has how traded into pocket support.  There are rising wedges visible on almost all indicies which suggest a profit-taking wave is inevitable.