wallyam,
IMO, the market is in a big revaluation due to the interest-rate
cut, and the new dynamics of the world economy. Because of
this, the price estimates have been raised by many of the
brokerage houses.
If you look at the DOW and the NAZ, the shapes are identical.
Whenever I see this, that means 100% program trading, which means
all the "big players" have decided to redo their models (or
whatever) and they have totally new price forecasts.
I don't think they've changed their earnings forecasts (as least
not yet).
So, I'm now betting that we won't go back until we hit higher
ground. Maybe then, we will retrace. I will try to be nimble
enough to stop out if I can and rebuy back at $40-45 wherever
if I can. I still think at some point we have to retrace, but
the dynamics of the market have been totally changed, so
what else can you do, except go with the flow.
let me know if this makes sense,
joe |
