Andrew,
When the S&P 500 closed at 945 on 9/16/97, above the high of 939 of 8/20/97, it established the rising pattern of higher highs required for an intermediate uptrend of 5 to 10 weeks. So it is possible the end of October could be bad, but unlikely. The worst month is September, the worst year is the second post ellection year (next year), from a historical perspective.
Investor's Intelligence (Oct 2nd) Bearish sentiment index is still above 30%, barely. The 30% line has an uncanny accuracy in predicting short term market tops. Of course if you are at max margin and heavily invested in Gateway, Dell, Ascend or one of the others with a P/E of 2,000,000/1 you deserve to be worried. ;-).
Xoma is consolidating nicely. Call me over-optimistic if you want, but I still hold to my prediction of $20+ by year end.
t |
