Friday HOPE sprang (sprung? springed?) in the Dow. In the formation we could call a “tight spring” there was a power bar across the tight spring trend line. These kinds of signals are of strictly temporary duration — but that doesn’t mean that there couldn’t be extensive follow through. At the very least we think it means this downwave is finished and we are in for some upwave. Additionally there have been reversal days and bottom looking patterns forming in a number of issues. In line with the theory of natural hedging some longs in the portfolio are reasonable.
The issues we have mentioned the past several weeks are probably good candidates.