Larry, if you remember, past the May 22nd high, the old Hal gave one or two "buy signals (both of which were not accompanied with good BP and VIX numbers), and they turned out to be whipsaw, the time the signal flashed, most of the rally was over, and the subsequent sell was at a lower level of the buy, unlike the excellent April and September calls. I fear what we have here might be the same as the summer 2001 call. Yet, a close above 1805, would probably trigger an old Hal buy, and will trigger a turnip buy, the reasoning above is why I will go to 40 % rather than 20% cash. I have already gone from about 68% cash to 58% cash, mostly by buying deeply discounted stocks like BPRX, GIVN, CNCT, SOL, TARO and GTW. The rest will probably call for deployment of Momo stocks like the Q. My buy signal on the Q will probably be a close above $38.5 for EMLX and about $45 for QLGC, still ample room to participate in a serious rally if it evolves. Will it?
Zeev
Zeev |
