Friday, February 2, 2007
"Stick your biscuit in that gravy while it's still hot" -- Paul Newman as "Hud" in that great movie, one of my favorites (quoted from memory). We have a confirmed "second mouse" breakout. The S&P made a second consecutive close over the nine week rectangular consolidation pattern, signaling a confirmed break up to start the second leg, aka second phase, of this bull move. If you are on the sidelines, you should start to deploy your capital. The real buyers have been buying the dips on the move, so that's what you should do. The Russell small cap index looks like a confirmed breakout, too, out of an 11 week consolidation pattern. Get to work - find stocks that fit your style. I'll write more later on deploying capital. If you are already in, hold on until the stock or the news gives you a reason to sell. Ignore the beefer ping pong game.