A week of weirdness…

Posted on May 26, 2012 by in Letters

Or it could be called the week of the long tails.  Wednesday was nothing less than bizarre with the Dow down triple digits and then reversing to finish up.   All in all the SPX transversed  86.9 points to close up 22.60.  Here is the way we read it:  Lots of bears are still hiding in the woods and betting their opinion, driving prices down.  Other contrarians and investors are seizing these prices as opportunities.  The extreme ranges  -- 9.97 to 24.18 --  reflect a struggle going on for the soul of the market.  But overall we see the market being born again as a bull calf (Molach?--well, whatever).  This all looks like wave ending and reversing behavior, and our personal accounts are long.  Readers , who in general are more patient and smarter than we are, probably never blinked, though prices got within a hair (1291.98) of the Basing Point stop (1289.51)

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