Top Line: The market is now struggling to go down. The immediate result should be a rally.
This evening we must emphasize that the media can be persuasive in their incessant chatter about what the market is doing currently. The selloff in the last week has now overdone. We purchased some stock this morning because of compelling prices. We'll see how it works out because we think we will be selling most of our positions within a month.
Yes, we don't think the Dow can jump 2000 points in a week...it's possible but the odds are against it seeing as how Monday is a stock market holiday. With the current selloff going into extra innings over the last few days, we have missed on the timing so what about our 10K price target?
As far as the price target, it does seem outlandish to think the Dow could make it to 10K or above. We don't really think the price matters, what matters is that we make sure that we do the right thing as prices go up...which is? Correct, Sell. We will be watching our positions very closely over the next two to three weeks to find a good exit point.
We are not feeling too well this evening so we are going to put the post and us to bed...more tomorrow.