Mark, the turnips have turned "bullish" only in that they no longer see 7400 being breached between here and the end of the year. Yes, I think that an entry here in the week after next or late next week, would be a good one to participate in a year end rally. Just try to avoid stocks in which a lot of losses have been incurred by people, these may still suffer from tax selling. That cover most of the now undervalued low cap, but hey, that is the name of the game. Institutions are going to pile into the IBM's GE, MER, and CSCO type stock. Few small caps that have not suffered and thus would not be in the tax selling book are also good candidates. (I mentioned a number in recent posts).
If AG continues to lower interest rates, he will probably avert a real recession, and thus 7400 will be seen as a major low. I do not see, however, us going with the DOW much above the July highs until earning momentum up of the S&P type stocks is reestablished. That may take some time and will depend on health returning to Asia, or at least good visibility that such health will return, IMHO.
Zeev
Zeev
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