Market Comments

October 23, 2007


Fund share prices as of: 10/22/07
Fund - G Fund F Fund C Fund S Fund I Fund
12.17 11.71 16.91 20.55 25.00
$  Change - +0.00 +0.00 +0.06 +0.16 -0.13
% Change - +0.00% +0.00% +0.36% +0.78% -0.52%
  L2040 L2030 L2020 L2010 L Income
18.50 17.61 16.78 15.46 13.42
$  Change - +0.03 +0.04 +0.02 +0.01 +0.01
% Change - +0.16% +0.23% +0.12% +0.06% +0.07%


Today's Comments (Short Term Outlook)                             Printer friendly
Not bad

 Technically speaking, Monday's action was not that bad.  Not great - but not bad.  The major indices all finished in the green with the Nasdaq and small caps leading the way.

We got the Monday morning hangover I talked about yesterday, as the early emotional money  sold with a vengeance at the open, pushing the Dow down another 100 points.  The early action (usually the first hour of trading) is considered emotional money or the "dumb money".  

The selling didn't last long as the Dow almost regained all of those losses within the first hour, but another bout of selling took it back down toward the lows - which held!

That was a good sign.  That initial low held all day and when that happens, the "smart money" knows that is a good sign and they bought during the last half hour of trading.  the last half hour of trading is considered the "smart money".

      

After the close, Apple reported a strong quarterly report and the stock shot up 7% after hours.  The futures shot up as well and are staying in good shape as I write this late Monday night.

Stocks were oversold and due for a bounce, and when the market is due for something, or the indicators say something is likely to happen, the news usually follows to help the cause.  So, Apple's numbers could be the catalyst to give us relief rally.  But don't get too comfortable.  This is just an oversold bounce and we have no proof that it will be anything more than that.  It could be, but there was a lot of damage done Friday and we may need to be careful for a little while.  The PMO indicator has triggered a sell signal  as it (the PMO) moved below the 10-day moving average.


                                    Chart provided courtesy of www.decisionpoint.com

So, enjoy the early bounce, but don't get too complacent unless you are a buy and hold investor.  This pullback should just be a small blip on the big chart of life.  But those with active accounts could have some buy and sell opportunities in the next couple of weeks.  Be careful not to let emotions make your moves for you.  You want to buy weakness and sell strength - not the other way around.
That's all for today.  See you tomorrow.
 

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