Posted on September 26, 2006
Filed Under Uncategorized |
Dear Friends and Thinkers,
I may have been stupid enough to try to call a market top, but I’m not stupid enough to argue with new highs on the market. At the close of trading today, Tuesday September 26, the Dow was up over 90, and the SPX up over 10. Both are sitting at new highs for the year. Breadth has been good, and volume decent. Importantly, the SPX has managed to best its May highs, hold its territory and add to its gains. The Dow is not far behind. As I said in Part II:
…I want to reiterate, if prices do move up, they could very well keep going for quite some ways, so beware!
Looks like prices are on the move…up! While I may not like it, may think the gains are not justified, that the market has no business rallying, that it is probably being manipulated, whatever — I cannot fight the trend. The market is bigger, badder and stronger than me. The only thing I can do is humbly submit. This is the life of a trader. When real money is on the line, you get out of the way of a speeding freight train.
The Dow is only a few hundred points from an all time high. If it can bust through that overhead resistance, there is no telling how far it will go - not because of any “fundamental” reasons, but because technical trend followers will see that signal as an all-clear to party.
Think TPB doesn’t want to see that before the election?
The Dow is only 30 stocks - it is not hard to manipulate. The S&P 500 is easy to manipulate through the use of futures contracts. We have the ex-Chairman of the most powerful investment bank in the world sitting in the Treasury hotseat, and elections coming up that this administration very badly wants to win.
Considering the circumstances it was foolish of me to try to pick the top.
There have been some excellent comments and discussion on the numerous open threads on the blog section of the site. Thank you all for participating and sharing your insights. I look forward to your comments on this post as well.
I will have a more complete summary of market action at the end of the week for subscribers. Subscriptions, like all the best things in life, are free!