Sunday, November 07, 2004
The market is at an interesting point. Rationally I can't think of too many reasons why it should be moving higher but it is. I have written previously that there have been only two election years since 1950 that the market reversed its trend after the election. There have been plenty of knee jerk lifts like we are having know. We should know in a few days what we have now, reaction or rally. I have put together a list of names I will be adding this week to client portfolios. My planned action illustrates a key point to my process. Even though my logic tells me that the market should not be going up it is in fact going up. The SPX is above its 200 DMA and it has broken the downtrend that it has been in for months. I am not smarter than the market so hence the plan to move back in. I have about six or seven names to buy, but I will do so slowly over a few days. The market is overbought and so I want to see how it trades.
Posted by Roger Nusbaum at 8:53 AM