Jacob, very interesting observations, it surely pit in question the long held believed that LTB&H is the only real working way to succeed in the market. By the way, you thesis about the strong getting stronger is not that flawed, but you should not compare the 97 highs to just a price here at random, but the the subsequent highs (either the next cycle top or the last), or at least to the current cycle's lows, IMHO.
As for the market, I believe that we will set a low (could still be only a "tmporary low, depending on how we fare next week) the end of next week, or the latest by the following Monday (9/17). Not being able to "nail down" the absolute bottom, I have started to deploy cash Friday, and reduced it on the close to 48%, and plan to continue deployment as next week evolves. I have taken a position (already in the red <g>) in NEWP around $16 which is not much above book value and plan to reestablish positions in the likes of NVLS, KLAC, CYMI and DPMI and continue and play "cat and mouse" with CCMP, that last one looks like one of the strongest in the group.
Zeev |
