11.30.07
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11.30.07
Before you go and get too excited about the market, remember it almost always retests it lows as well as its highs. Some times it means the correction is over and happy days are here again. Other times it is simply a “dead cat bounce” and the correction continues to the downside. Let’s crunch the numbers and see what they show us. The fact is that the market put two very good up days together for the first time in over a month, just when it had made a move into the minus 10% column for the first time in over four years. Thursday it took a rest and closed up slightly and then resumed it sharp advance again on Friday morning, only to give it back to profit taking at the end of a good week. It seems as though everything that was wrong with the market for the six previous weeks had been resolved. One thing that was good was the price of oil, which had been flirting with $100, turned south and by weeks end, was below $89. The other big news items to help were the Fed almost certainly will ease again at the December meeting, and the sub-prime issues appear to be getting worked out. The bears had a good run but it is starting to look like the bulls are taking back control. We have been in CASH but are now going to put 50% back into the Market. A new PPP is now in effect with 25% in the Dow and 25% in the SP500 and 50% in CASH.
Till next time
MTA Staff
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