By: Tate Dwinnell

Tate Dwinnell — Tue, 12 Jun 2007 18:26:39 +0000

Hi Zachary, there probably is quite a bit of money sitting on the sidelines from the "technical" guys who got a bit too bearish after that Feb 27 sell off (one of those guys is certainly me) Considering the market ignored significant technical damage over the past few months I know I’m not the only one. Perhaps that money and the fact that retails investors don’t seem to be over exuberant quite yet, this market probably has one good run in her yet. I think its important to remember that bull markets don’t roll over and play dead so easy. Just as it has frustrated shorts over the past few months it will probably do so again. Wouldn’t mind seeing one more big down day to start getting out of a few shorts and replacing with a few small long positions. I’m not really a fundamental guy who watches rates, retail sales and other economi numbers with a microscope but I think this economy is at a critical area, so I’ll be watching those numbers more closely. At any rate, you can’t call this business boring ! Thanks for the comment.

By: Zachary Scheidt

Zachary Scheidt — Tue, 12 Jun 2007 18:01:47 +0000

I agree with your concerns on the consumer propping up the market to some degree. I also sympathize with getting short too soon as my performance is off this year due to being too conservative too quickly. My concern with my own bearish bent is that it still seems to be a crowded place. Investors were hesitant to be buyers all spring and Iâ€™m still not seeing too many signs of people throwing in the towel and jumping in despite their fundamental concerns. Do you think we need a wash-out buying climax to truly put in a top?

Comments on: Market Topping Action; Utilities Get Whacked Again

By: Tate Dwinnell

By: Zachary Scheidt