New Call on the Market
You will recall that I have been a major bull since early last year. I was expecting the 04 market to bottom in May or June of that year and that we would then have a great market until the end of 05. I was off on the bottom which for most investors occurred in mid August but otherwise my prediction was pretty good. I'm up about 120 % since those August lows. However I have now turned quite bearish. I sold all of my steels over the last week and today got rid of a large selection of others. I'm holding two thirds of my CLF (protected with written call options, written several days ago), other mining companies (HBM.TO, FNX.TO, TKO.TO), apparel companies (DECK, AEOS, JLN), already oversold stocks (RTC, LEXG, WRX.TO) and WLDA and BUKS. Everything else is gone. I'm expecting a fairly good correction (one that ignores current fundamentals and is based upon foreign retreat from the US market (because of the $), commodity price shocks and concern about inflation and rising interest rates. I think the selloff will present excellent buying opportunities (perhaps once again in August (market may well follow last year's pattern). Aside from my own concerns, Vector Vest has gone to two red lights (three and they generally recommend playing the market short), after a long period of green lights. I expect they will show three red lights very soon. They went to three red lights in late Feb or early March of last year and I ignored that signal and was badly hurt from then through August (especially July), I'm not going to make that mistake again.
AI
