Another day another 400 point move on the DOW, a traders dream....or nightmare. Since our call the other day Yahoo is up almost $2 per share. For the math challenged, that is almost 20% over 3 days! Remember again that at this price any acquirer gets the search engine for $-0-! We still see.......$18-$20 on a buyout offer. Now we do not have inside information, but the stars seem to be lining up.
We have said to pick your spots and buy and then walk away, we said the markets will be a roller coaster now listen one more time......Whatever you bought this week hold to next month and reduce by 50%. September is historically the worse month in the Markets, contrary to the popular belief that October is the month. Add to that congress back in session and the 10th anniversary of the 911 attacks and you have a recipe that only those with a strong stomach can endure. 50% reductions into cash keeps your powder dry for opportunities that will present themselves in Oct-Nov during earnings season. We are liking retail, high tech and home builders for ideas in the 4th quarter.
Today, this morning, is short and sweet. Much to do, stars to chart, incense to burn......Remember that most traders flatten positions going into the weekend during the summer and YOU NEVER LOSE BY TAKING A PROFIT!
The Prophet
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