The turnips turned early this morning and I moved to 80% long (see my comment on Steve's thread). Actually, during the massacre yesterday, a lot of under the market GTC I had got filled, so I did not have much work to do, bought some HAUP just above $60, some SC companies etc. The turnips will stay bullish on the Dow (and the market) as long as we hold 10050 on any possible (I should say probable) retrenchment.
My target are first the old high just under 11,200, and if that is broken I have an outside of 12,800 as this year peak on the DOW (it used to be 13,500 but the excursion under 10,000 forced my turnips to scale down their bull target).
As Haim would say, the Tulip Mania is still on. Starting next month quite a lot of money is coming out of the Japanese postal system causing a bulge in liquidity in world wide ,markets, some of it will en up here, IMHO. This excess liquidity will be on top of some $200 Billions or more that will be released from the bond market. This is a lot of money chasing what? Equities of course, and once the fear of an immediate bear market dissipates, the money once more will be chasing perceived growth rather than real growth setting us up for a very nasty bear market next year, according to plan...
Zeev |
