Dawn of the Dead! 6-6-06

Good Evening.

Once again it seemed as if the market was going to follow through on the downside from yesterday's drubbing. In fact, today's decline in the morning was Spiking the VIX and causing much disgust in the land of stocks. However, Semiconductors were showing some decent out performance as has been the case lately. There clearly seems to be a bid underneath that very beaten up and important sector. By the end of the day the market staged somewhat of a recovery which lends a little hope for some possible follow through tomorrow from those famously wimpy Bulls. We will sure not get our hopes up since we are so accustomed to being disappointed lately, but if they deliver it we'll take it. In fact, it is amazing how remarkably refreshing it feels to lose just a little bit of money these days. Losing a little bit of money is starting to feel like a "rip roaring" Bull market.


If You Held a Taser to Our Head:
The Fed has finally made its case that they want to be considered Hawkish. Whether or not this is pure jawboning that will be counterbalanced by Dovish action remains to be seen. All in all, some of the uncertainty has been removed from the Fed's stance for the time being. Perhaps we are closer to a tradable bottom than we realize. In other words, we do not think the downside from here is too severe and we are still of the belief that major upside is ahead in the intermediate and long term.

Hope you traded well.

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