Friday, June 30, 2006
Right or wrong, institutional money bet on an end to rate hikes yesterday. In yesterday's report we outlined the similarities between Wednesday's market sell off and the down day on October 27. Now with the market up on big volume and the fact that the market never truly followed through lower after the June 8 capitulation day, the chances of a strong rally similar to last November's is quite high. Continue to manage volatility as this market can still shake people out of good positions, but consider accumulating aggressively on dips.