Isn’t it?
Looking at YTD charts of DJIA/SPX/Nasdaq/RUT/MID/SML/Soxx and well you paint an amazing picture of what may be finally getting to a late-stage bull market (re: weariness = correction >10%, perhaps bear market)
I mean 2 shortlived corrections thus far in 2007 and the Fed-saved drop recently that wasn’t allowed to run its “normal” coarse with their oh-so-timely intervention just when we could’ve gone down another quick 10%!!
So we once again move powerfully off the bottom - but did we? I mean how long can AAPL, RIMM, BIDU and AMZN (re: QQQ) hold the market (see symbols above) up? Most all indexes are taking a heavy hit…and well now for the first time in '07: BIDU off 5%, RIMM off 4%, AMZN off 17%, AAPL off 2.5% are seeing some losses.
We shall see what happens…but 2008 is an election year!?! Economic fundamentals do seem ripe for a decent retracement but, let the market be your guide going forward;)
Gilbert
Gilbert -
October is always quite volatile and we will soon be headed into the bullish season. This government will keep the markets propped up until the election. But after that look out. The next president will have a real mess on his hands.
Steve
Well Steve, my bets are placed.
As of right now, buyers will need to once again save the day - or the Fed.
Could once again be an ugly close so I place a WOTM bearish call spreads in FXI and QQQ as well as bought some NOV 52p in the QQQ.
Most indexes (QQQ aside) are already in Feb decline state. The market NEEDS a strong correction to wash out all the pozers and so strong stocks can confidently move back into the forefront.
IF we do close deep south, Fed will (likely) need to move pre-meeting with a rate cut or this market (NOT QQQ) will be in standard 10-20% decline.
Just my humble opinion. Gilbert
See Gilbert - I speak and the markets obey 
Steve
Yeah, how’s this for timing. Just as market is about to severely breach lower support:
"Rumors of an imminent Federal Reserve discount-rate cut swept Wall Street this afternoon and gave the market a much-needed boost.
“The Federal Reserve declined to comment on the rate-cut rumor.” yeah, ya think?
Anyway, here is how I see it. The’ve already cut the discount rate twice since August in response to the credit crunch. Next week is an almost 100% chance the fed funds rate will be cut .25%. We already know this.
They already got ahead of the curve with the surprise .50% rate cut (I expected a .25% cut). Now this rumor (lol). What more can they do and still save face? They are going to have to do another “surprise” cut to the discount rate. I don’t see that they can’t wait a week for the fed funds rate - but who knows?
Markets trade on expectations about 6 months out. It just doesn’t look all that glamorous - unless we get 10%-20% clip from the indexes to build on further gains, series of rate-cuts, election year and all the global dynamics that are in place. We are going to get this, it is just a matter of time.
You are more like buy-and-hold. Excellent selections mind you, but small-caps lead on the way down, too. Once we get a “normal” correction new market leaders will emerge and perhaps yours will still find their way to new highs, but (in the meantime) your gains will be severely reduced - yet market-beating nevertheless.
I “trade” using covered calls and index spreads with some stock spreads. I’m much more comfortable with the C2 interface and am better positioned (than before, although the commission structure is not currently sitting right with me) to profit when the inevitable occurs AND thereafter. I know you keep hearing this from me and I was right when I came to C2 and said the market demise that lies ahead bodes for me best - to just stay in cash until the bottom of a decent correction, but I now just hope it will happen sooner than later.
All this volatility greatly leans toward the “day-trader” and we all know how successful they are!
We’ll look forward to all the action as it comes;)
Gilbert
"You are more like buy-and-hold. Excellent selections mind you, but small-caps lead on the way down, too."
Could be they are leading the way up right now.
