Monday, April 10, 2006
Stay the Course, Sell the Rally
If you're not out yet, make sure you're watching your longs. Eventhough on the surface it seems it's time to party like it's 1999 allover again, it is really just a matter of time before the marketrolls. All the indexes are being distributed on the way up. As crazyas that sounds, markets can and do top as they continue to movehigher. Earnings, I've argued all along, would be the catalyst to thestart of the selloff. The way the internals are acting, it seems themarket is saying the same thing. Then add rising oil/gas prices andinterest rates to the picture, and you have a recipe for a bearmarket. This is not a guess, these are all facts.