Bearded One:
Certainly this market is overbought and overvalued by any long-range standard and it "ought" to correct by a substantial downside movement.
BUT, A day like today (Friday), is worrisome to a bear. Every bad news possible was in existance today. Foreign markets, economic news, Iraq war sabre-rattling. Yet where was the 3:00pm blowoff? - It fizzled, and the market recovered remarkably from 3:00 to 4:00. If you'll notice the market closed on a 350+ positive Tick!
Also, Where is all that investment money wrung out of Asian stocks going to go. Into US stocks, that's where. Flight to quality, and for quality equities, the US has it!
I'm certainly uncomfortable about the near future of this market and I have been trading Puts (didn't hold them over this weekend though!), so I've been acting like a bear, but I'm not sure were going to see 7,000 all that soon.
BWDIK, I only guess, like the rest of us.
Dick |
