Sharp, Quick And Exciting…
My last report talked about the
follow-through days for the major indices. I suggested upside testing was ahead.
While I was not overly impressed with yesterday’s volume, the upside continues.
I have been taught to never fight market action…so I won’t. I will just keep
studying the daily moves of the market and evaluate them. So far, so good. That
said, I must tell you that I still have worries.
I will just repeat what I said in my
last report.
- This is still a rally in a longer-term downtrend.
- There continues to be a small list of breakouts.Â
- Quality remains suspect.
-
Resistance is straight ahead.Â
The rubber is going to meet the road in the next
couple of days.
This move feels like another bear market
rally…sharp, quick and exciting… possibly only to fail miserably. So far, it
is three out of four. Let’s hope four doesn’t come along.
Until a gaggle of geese start to break out, I would go slow. It is I believe of
the utmost importance that you recognize that in order for this market to
continue to rise, breakouts must happen…the New High
List must expand …and leadership must show up. Not quite yet, at least
as of yesterday. But tomorrow is another day.
P.S. I wanted to take this time to let you know how thrilled I was at TM 2001. Thank
yous go out to Michelle for telling me what to wear…to Amy for telling me
where to go…to Marc for setting me up for my 90 minutes…to Eddie for keeping
my feet on the ground every time I got too full of myself…and to Larry for
letting me do the Magic Johnson interview and taking a chance on me a year ago.
If I missed anyone, you must know how I feel. Just a tremendous team of
professionals that put together a successful three days in the face of some
serious trying times. I will never forget the experience.