Thats what is going on as money managers chase this market higher so they dont get outperformed by the indexes.
Lunch time is always green time now days. Market looks cheep here, everyone shoud buy buy buy. Its recomebded to take out a cash advance on your credit cards and buy stocks, this is just the beginning of a new bull market that will last twenty years wink wink!
should have taken advantage of that 18 point drop this morning.....these minor pullbacks of 5-20 points on the DOW are 101% buys...
The Bulls are getting pretty greedy. The nasdaq has rallied 23 percent since july with barely a pullback. The sp 20 or so without a 1 percent decline
Don't forget it's in the governments best interest to keep it up into new year. Lots of tax dollars at stake !
Personally I would be selling all spikes and resistance levels for your personal stocks.....We are not in some crazy bull market where everything is moving up... ANYMORE....In fact I can show you about half of the s&p 1500 stocks (Large, Mid and Small) hitting resistance and pulling back over the last month....The pull backs have not been strong and hence the market index goes higher, but they have found tops and only rally on the extremely strong days.....Some broad market indicators suggest that the market has actually begun to correct over the past three trading sessions and I personally have continued to sell into this rally....The profit taking only makes sense to people who were buying in June and July, because they have incredible gains over the past few months...All the while the sheep are pushing their luck still hoping for the incredible gains in stocks that have moved straight up, but forgetting the fundamentals of this 4 year move...Personally I think the smart money manager are slowly getting out of positions at these levels and selling a minority of their positions to the sheep....Bottom line "If you are buying right now and plan on holding the position as an investment and your stock just hit a 26 week high over the last 20 days and is a small to mid cap stock that can't capitalize on a weakening dollar in 2007....Your upside is 12% for a six month holding period and your downside is 35%....Dumb statement I know, but looking at the broad market is the only way to get a grasp of what is going on....DOW @ 13000 is good only if you own some of the 30 companies in the DOW....s&p 500 @ 1400 is great, but what if you just got overweight small cap tech and software right now....Kind of missed the boat if you get my drift...Kind of missed the boat in most sectors if you get what I'm saying....Just be careful out there and own companies that can handle a real downturn in the market....Remember the PONZI story....It will come and it will be just as painful as May and June.....WHY? Global market will tell the tale again.....IE) India, China, Hong Kong, Brazil, Europe, etc....Money Managers are not idiots and having an index move in one direction since JUNE will bring in the profit taking at some point and hear me "loud and clear" when the money starts to flow out of global indexes it will be another panic selling situation across the globe...Some indexes are moving above a 40 degree angle...Can you say bubble?....Anyone who knows anything about index history will say the same story when index's move at this angle "BOOM TO BUST"....If we go another 3 month's top at this rate without any medium size correction....Then BUST some global event will cause this....Good luck getting out the day it happens... Of course once again this is a place where everyone is in and out all day long and nobody cares about longterm outlooks...Most people won't even hold overnight and I understand why...RISK TOLERANCE....It's actually quite smart at this point in the bull market....So go long, go short and follow the trend, but remember paper profits are just paper...Don't spend like it's real until it's realized... $COSTAverageMAN