Be Careful What You Wish For 11-14-05

Good Afternoon.

The stock market has been heavy all day with negative breadth. In fact breadth has been problematic recently despite the markets levitation. Although the breadth has often been positive in recent days individual stocks have not demonstrated enough new highs as the averages continued to rise.

The market badly needs a healthy consolidation. Our hopes were for a false breakout either today or tomorrow before such a pullback were to materialize. Thus far the Bulls cannot seem to show any commitment. Perhaps they are still playing the 3 O'clock game in order to determine exactly how sharp the Bear's claws actually are.

While the Semi's are outperforming the Small Caps are lagging. The bounce in the energy sector is probably causing a little uneasiness in the NASDAQ. Even the future privatization of Georgia Pacific (GP) is hardly inspiring the Bulls today.

Due to the fact that the market is short-term overbought yet the intermediate and longer-term still seems healthy we would expect any pullback this week to be well contained. The Bulls may still show up for work and rally the market one last time this week before the consolidation truly kicks in. However, the pullback seems inevitable and is more than welcome.

Hope you're doing well.

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