Berney; This thing I see in the DJI I haven't seen before, at least
not this much. Yesterday UK moved or at least held the DOW up, with
it's 5pt gain. It's the smallest cap in the DOW..and that's part of
the problem I see in the DOW is that a stock that only commands
7B can move the DOW per pt move as much as one that commands 250B.
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The strong consolidation in the head could also be a sign of very
cautious buyers wanting to be liquid.
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Some other problems with the DOW , GM my god why people didn't see
this coming from the day the strike started.
GM could still fall "a lot" the Dow should have switched to Ford
back in 94.
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I have my doubts about AT&T, went on that thread when she was 65
and said so, but the Bulls attacked me. I still do not see AT&T
as a buy, but as a strong sell. The recent drop in price may have
more in it than her buying that internet thingy. There is a rumor
now that she could get dropped out of the DOW. It's just a Rumor
but if it happens she will tank.
This hotshot turn around could get hit bad , don't forget sunbeam.
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Over 3 months ago I warned about oil stocks, let keep in mind they
ran up on $25 oil..go back and see were they were prior to that
even when oil was $19 , why the market is so fast to trade Air lines
on a small change in oil price , but so slow on the oil stocks
don't make sense to me. Looks like they want to wait till the low price of oil shows up in the earnings. Along with the huge charges
they have run up in exploration.
Major oil stocks are over priced.
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Last the Dow separated from the S&P last July , and since then
has trailed. Cash flow is driving the market but if that flow
slows , it could get bad.
Yet that could be some time off, and
calling the top is not a good idea, but I've gotten defensive
as all get out. As have most of the mutual funds.
The defensive posture is growing strong & it could in it's
own way it may prevent or at least limit a big correction.
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Last tech stocks went over bought recently, I look for a pull
back in techs within a week.
Jim
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