Don't Wait For Your Pitch!
The stock market did exactly the right thing. A little consolidation on lighter volume was just enough to shake out some weak holders and set the stage for more upside next week. The breadth even managed to close positive on the NASDAQ. Every pullback refreshes the market for further upside. The fact that the market managed a nice bid into the close was text book Bullish action. Chalk up another upset for the Bears.
The market will not offer the fat pitch that so many are looking for. Therefore underinvested Bulls as well as mildly Bearish traders will soon capitulate. They will rationalize buying at this level knowing that the market is still flat to down on the year.
Stronger Bears will stubbornly hold out while watching the rocket ship leave the platform. They are destined to provide more rocket fuel from significantly higher levels. Fortunately for the fully invested Bulls (a.k.a. Kcap) there are barges and tankers loaded with rocket fuel for future capitulatory purchases. After over five years of disappointing market action the stubborn Bears will not die easily. The cruelty of the market is such that the most skeptical buyers pay the highest prices…go figure!
If You Held a Taser To Our Head:
The market will continue on its "trek to the stars". On October 11, 2005 your friendly neighborhood Kcap Team made an extremely bold call for a multi-year bottom on the NASDAQ. Funny how the skeptics from a few weeks ago are no longer sending us e-mail. Perhaps they are too busy buying at higher prices.
Long most tech stocks on Earth and Planet Vulcan.
Live long and prosper.
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posted by Kleiner Capital Management, LLC. | 5:49 PM
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