Sunday, April 20, 2008
Friday April 18th, the Dow closes over 12,800, the Dow Transports close over 5,000. At the same time new highs on the NYSE dwarfed new lows by 3 to 1. Bad new predominates, but the market does not care, it wants to go higher. For example HOG announced sharply lower slaes and layoffs, but its stock is in the same 37 area as it was a couple of months ago when we told everyone to cover their short. The market is sold out for now. Whether this up move is sustainable--only time will tell. We will not know this until Memorial Day. However, you cannot be short this market yet..... Trust the market, but as Reagan used to say, "verify"
Posted by Steve at 6:08 PM