Prudent makes sense to me, too, AJ. I recall a rate cut day last year where there was a muted reaction after the FOMC announcement. The next morning, the Fed flooded the liquidity gates and (unrelated or not) the Dow flew 200 points up even though there were a lot of reasons to expect down. It'll be interesting to watch, what with those IPOs being priced tomorrow. I will point out, though, that even if non-tech shows some slippage, those IPOs should not have a problem as the market has proven its strength of late. As to where it's going, I really dunno. I do note that Rydex has become bearish here for tech, at least (long funds full o' cash), but I suspect I can find just as many bullish possibilities, too (VIX saying "new lows beget new lows", etc.).
I will say that the Dow is gonna bust out one of these times. New highs, higher lows. . . then it seems to go back to 10475 and start over. At some point it's gotta make up its mind, and I suspect we see 11K before 10K, but that's just me.
the freep |
