We probably left heads spinnig with our last letter which blithely called the SPX a hair off 1700. Well, as they say, even Homer nods… But he doesn’t sleepwrite. (This does not refer to Homer Simpson.) Prices continue to dance about 1800. Not a tango. A Balkan folkdance. Going in circles and circles. These things can be quite beautiful if you have infinite patience.
The real news is the Compq closing above (or around) 4000.
(no link) The PnF method looks for a target of 4410. That would not be inconsonant with an SPX of 1970.
Here is the bar chart:
This is actually more important than it seems — the NASDAQ crossing 4000. With the IWM going to new highs the market seems to us to be gathering momentum. And when we look at our portfolio we seem to be in cash positions on a number of issues: IWM, UPRO (SPX), QQQ, but not to miss notice of our shorts –EUO (euro, GLL (gold), ZSQ (silver), TBT (TLT).
Happy Thanksgiving to all, and to all a good night!