The Upstream Battle. 11-30-05

Good Afternoon.

If you ever wanted to know how it feels to be a Salmon…today's action is a good representation. Our view is that if you stay fully immersed in these waters, just like a Salmon trying to spawn...you're about to get $*@#&^. Still some traders won't get to the promised land and will simply be snatched up by the waiting Bear just over the falls.

When the market is struggling so hard to gain a little traction even on a day of window dressing then warning signs should be flashing. We are not suggesting that a deep decline is imminent rather, that the pullback has simply not run its course. Another 1% retracement from these levels will be exactly what the doctor orders for a continuation of the Year End Rally. Our view is that the water will be safe to suite up our aggressive exposure sometime late next week. In the meantime, we are approximately 50% invested with the other half nicely tucked into the money market waiting for lower prices.

Understand this: We are not opposed to redeploying our cash at higher prices should the internals of the market demonstrate broad participation earlier than we'd expect.

Raise some cash.

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