A reminder
The market arguably nears the end of its leash:
1) Intermarket relationships worsen (e.g., US$ and other currency cross rates, rising interest rates and commodity prices, etc);
2) Objective measures of the markets' performance become increasingly ragged;
3) Volume on the price rally has been wretched;
4) Time runs out. (It nears the end of the ~2 weeks of upside I granted ;-) approximately... well, 2 weeks ago)
This "reminder" is not an endorsement to sell everything, or even anything, at this specific moment. I could be wrong, which would be neither the first nor the last time, and winners will continue to occur, even in such an environment. (Consider Cameco/CCJ, mentioned in a previous post.) Nonetheless, look to your portfolio holdings. Manage the detail, manage the risk. As I noted yesterday in the comments, Dominos/DPZ presents at 8:45am pdt (at a CSFB conference); this presentation could help the shares leave behind its short term base. Apple/AAPL -- whose shares could not squeeze any more into a chart based inflection point; rarely a good sign -- reports quarterly earnings after the close today. Breakouts occur at $39, $40, $41, and $43; breakdowns at $35 and $33. Google/GOOG, which reports in eight days (Thursday, 21 July; I will provide anon the link for the conference call) has, for the nonce, lost all upwards momentum, as it builds what I expect to be a base. This recent action is both understandable and expected after its huge move during May 2005 -- and should not continue for too much longer.
If you have questions re other stocks, please ask them here, as a comment to this post. The market opens soon, so I must hop. (-- Harvey)
1) Intermarket relationships worsen (e.g., US$ and other currency cross rates, rising interest rates and commodity prices, etc);
2) Objective measures of the markets' performance become increasingly ragged;
3) Volume on the price rally has been wretched;
4) Time runs out. (It nears the end of the ~2 weeks of upside I granted ;-) approximately... well, 2 weeks ago)
This "reminder" is not an endorsement to sell everything, or even anything, at this specific moment. I could be wrong, which would be neither the first nor the last time, and winners will continue to occur, even in such an environment. (Consider Cameco/CCJ, mentioned in a previous post.) Nonetheless, look to your portfolio holdings. Manage the detail, manage the risk. As I noted yesterday in the comments, Dominos/DPZ presents at 8:45am pdt (at a CSFB conference); this presentation could help the shares leave behind its short term base. Apple/AAPL -- whose shares could not squeeze any more into a chart based inflection point; rarely a good sign -- reports quarterly earnings after the close today. Breakouts occur at $39, $40, $41, and $43; breakdowns at $35 and $33. Google/GOOG, which reports in eight days (Thursday, 21 July; I will provide anon the link for the conference call) has, for the nonce, lost all upwards momentum, as it builds what I expect to be a base. This recent action is both understandable and expected after its huge move during May 2005 -- and should not continue for too much longer.
If you have questions re other stocks, please ask them here, as a comment to this post. The market opens soon, so I must hop. (-- Harvey)
posted by David M Gordon | 6:27 AM
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