Tuesday, October 03, 2006

Welcome to the Mile High Club!

And there she is, the big piercing of the highest closing on the Dow. I am still very confident in this overbought condition, and that doesn't change my opinion based on yesterday's action. All I know is there is no OTHER place I would rather be invested in than right now. We are seeing some high price action, a lot of media coverage on the current rally, volume all over the place, volatility indices showing very very low levels (check out the VIX/VXN) and some a severe overbought levels - my friends, we are about to see some serious action about to happen.

For the last few months, we have seen a pretty tight trading range (this has also perpetuated into tight trading ranges on many stocks), and with more news being attracted to the current situation, I would not be surprised if we see some type of breakout (either bullish/bearish) from the trading range.

Many investors will be willing to take money/profits off the table, you'll start seeing money come into the markets because of the real estate slowdown, and with corporate earnings just sleeps away - things are going to get real shaky, real fast.

Did anyone notice the WalMart earnings warnings yesterday? WalMart!

Volatility, I can't wait till you come back to the markets. And when it does, hold on!


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