What to Do?

Fundie-wise: We seem to be in no man's land, needing more data on inflation & growth to have a vision on which path the economy will proceed. The perma-bears are screeching about subprime loan defaults. I wonder if they are not too shrill? It's pretty clear that industry was rife with speculation & fraud. Some departments of big Street firms are going to be hurt & some beefers are going to the slaughterhouse. But I don't see how those woes can infect the normal home mortgage underwriting, though. Without a recession soon, stocks are very cheap on simple valuation metrics. Time will tell. No need to be a hero. Waiting.

Tech-wise: S&P cash 1410 seems to be resistance on many levels. Two closes over that level probably signals an end to the correction. We are waiting for a follow-thru day for the IBD system this week. remember, Friday is a triple-witching day. No need to be a hero on tech grounds, either. Waiting.