KLICKIE liquidates entire portfolio, calls market top. Crazy?
All of Bill O'Neil's criteria for a market top seem to have been
fulfilled--a surge in speculative issues, a climatic run up in
the NASDAQ and DOW followed by pull backs on light volume, increasing
long bond rates, weakening earnings picture and growth forcasts.
Particularly striking is the decrease in volume on the NYSE from
over 400 million shares per day to 300 million, and a similar
decrease on NASDAQ. Also, many on the high flyers, some crappy
companies, some quality, are deflating, everything from IOMG
to USRX have hit major air pockets.
I can't believe there is much upside left in the market in the
short term, and have raised 100% cash until I get a better sense
of where the market is headed. I'm particularly worried about
the long bond, the November elections, the Fed, and the North
Koreans (if you can believe it).
It won't take much to ignite a major sell off at this point--
the stock market is "meta-stable"--no bargains anywhere and
a lot of overpriced issues. |
