Mac, tracking the S&P 500, it has been trading in a narrow range and put in a triple top last week. Wednesday it hit the bottom of the range. The bounce up Thursday was positive so I bought Spyders 'SPY' on Amex or in Canada Tips 'TIP' on TSE, IMO a better way to play the market then Mutual funds and for many their own portfolio.
As you know, the Spyders far out performed mutual funds in 1998. This market is going to break out of this range sooner or later, the question is the upside or downside, IMO the bulls have the best chance early in the year so it better break to the upside soon or the bears may rule the day.
In Canada it is a different story, a bear market and now in a bear market rally, the question here is did the rallly peak in January, the market has turned and we will see if it can muster up to the Jan, highs
I think both markets is along your lines, believing there is more time to squeeze a few more percentage points out of this bull before Y2K and deflation fears increase.
As for Y2K, I like Group West, 'GPW' on Toronto, about 25% revenue Y2K related, good solid company, an IBM businss partner, strong revenue and earnings growth and undervalued compared to it's peers
Ron |
