Feb 7, 2005

Green Light

Friday's afternoon march higher seems to have given the green light to everyone that became hesitant during the January selloff. Today and tomorrow should show a strong positive bias but the question will be what sort of volume is drawn into the market. My guess is that returns get a bit harder after that and the market may begin a topping process. The best way to play until maybe next Friday could be by looking for sector rotations. The internet sector stand out a bit for its recent weakness while Google (GOOG) has easily held 200. I would not be surprise if that sector attracts some capital.

I will probably try to sit on my hands today, make some sales tomorrow afternoon, and then begin running a flatter book. We'll see how it goes.

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