Friday, May 21, 2010

Market Comment 05 21 10

 The market was deeply oversold and overdue for a short-covering rally and that is just what we got on Friday. Short-covering rallies sometimes lead to prolonged uptrends, but they also sometimes fail quickly and violently. Therefore caution is still called for.

When the market does bottom and resume trending up in a sustained manner, we will have plenty of time to participate. We did not let the emotion of the day get a hold on us during the recent extreme volatility to the downside and we will not let the emotion of the rally dictate our re-entry back into the market.

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