Guru View

So we had a lot of fun in the weekend, let's go back to Wall Street during the week.

** Stock market

The rally is alive and well, as the majority of the indexes are closing at record highs for 2007. The only exception for now is the Russell 2000, which is just shy of its 07' highs. Pullbacks and periods of consolidation are not out of the question, but the overall market TREND is clearly up. Meanwhile, the COT charts are sending mixed signals. From last week, there was evidence of a large amount of commercial buying of the S&P 500, that went hand in hand with a large amount of commercial selling of the Nasdaq 100 - the index that is leading the current rally . There was also some evidence of commercial selling in the Russell 2000 while the Dow Jones COT chart remains largely unchanged. In conclusion, while the trend continues to point up there is little sense in being bearish on the market. However, in light of the recent commercial selling, especially in the Nasdaq 100: warns me to stay on the cautious side. Typically, when you see big declines in commercial net-position for the Nasdaq, the market either corrects or consolidates in the intermediate future. (1 - 5 months out)

This is a photo I took from the Houston Airshow on Saturday 10/6/2007:
(Chopper)



I will post many photos and clips later.

Enjoy,

Swimmer