Securities Research Services

Wednesday, July 23, 2008

Time To Get Long

Yesterday we outlined two possible scenarios. Both assumed that the near term path of least resistance was down. Alas the difficulty of predicting the market's future. The market made a dip in the morning, but then buyers, who had been holding their cards close to their chests, showed their true intentions and bought, and bought and bought, closing out the day with a huge gain on volume.

Moreover, breadth on the day was excellent as was the price/volume relationship, which was the most bullish of all possible relationships; price up, volume up.

It looks like our bear market rally is off and running. It's time to get long. Just remember to take quick profits. The longer term trend remains down and once this rally plays out more downside is sure to come.

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