Another 2 cents on the "where do we go from here" discussion.
From this week's mailing from a TA newsgroup guy I've come to respect -
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HAPPY ENDING
A friend of mine made a presentation in Boston this past week to a group of institutional investors. In it, he made reference to something I've been saying for
weeks (months) but it was the way he said it that I want to repeat here. He said
this is probably the best buying opportunity for stocks since 1982. And then he said the following: "I've seen this movie before and it does have a happy ending,
even though you cry a little through the middle."
As you all know I share those views and have. While some out there decry these
constant bullish views with remarks like "say it long enough and eventually it'll come true, and then you can say I told you so," I'll accept that challenge and go
out on a limb this week with a specific prediction of WHEN. This is all based on
my view of the technicals and the psychology underlying this market. I expect this market to begin and MAINTAIN a strong uptrend within the next two weeks.
It may even be as early as this week. If I'm wrong I'll even distribute stones which you can throw at me.
Last week I promised to give you ten reasons why you should take advantage of
today's market opportunities. Here they are in a nutshell:
The Federal Reserve is on your side.
Tax cuts and Refunds are on their way.
Economic Recovery is Gaining Strength. (It's not apparent on the surface, yet.)
Inflation is not a problem.
Deflation is not an option.
Cash levels are extremely high.
Earnings Recovery is underway. (Trust me on this one.)
Difficult markets create good opportunities.
Long-term market drivers remain intact.
Invest in the strength of history.
There they are. I think you'll look back on these in the future with much glee.
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Here's my assessment of that foregoing email - Regardless of your personal beliefs about the short term market direction, if enough institutions get it in their head that they want to be in the market, you don't want to be standing short in the middle of the road when they do it.
That said, I'd be very mindful of the volume in the next little while for evidence of major institutional participation, as either supporters or outright buyers. Heavy selling would obviously trash the whole theory, as would continued low volume blah. |
