I apologize for the quick switch yesterday.  After the early Intel rallied failed again and the Dow was down over 50 points, I thought, how long can this go on?  I decided to move 50% of my money to the G fund for Thursday.  I sent out the email alerts, updated the message board, made the transfer in my TSP account, and went off to work.  An hour later I got a peak at the market and saw the Dow had gone back to green and realized we had just seen a nice reversal day.  I had to scurry out of my building and get to a PC fast so I can get the word out to you.  By the time I sent the emails and updated the message board it was about 10 minutes before the deadline.  Plenty of time for me to cancel my transfer, which I did.  I hope you were able to see that.  Not that it is a 100% guarantee that the market will continue higher, but I wanted everyone to be able to see what I did before the deadline so you can make a decision for yourself.

The reversal started about an hour before the deadline.  It is what I call a "V" reversal as it is a fast turnaround and usually indicates a capitulation (giving up) of the bulls - which is exactly what happened to me.  I gave up on any chance of a rally just before the rally started.  Oh how I love the psychological part of this game.  I am my own best contrarian indicator.  I just have to learn to go against myself, which really is tough to do. 

Here is the intra-day chart of the S&P 500.  #1 indicates where I sent out the first email alert (my capitulation) and #2 is where I sent out the cancellation. 

          

As I mentioned, this is not a guarantee of a continued rally today but that late buying tells me the "smart money" got in on it.  That is refreshing as we had been seeing selling during the last hour of trading lately.  The market is by no means out of the water just yet.  It still has to prove that this was just a pullback and not a change in trend.  I'm still watching cautiously.

Sometime this morning the results of the new AAII Investor Sentiment Survey comes out.  If I remember I will post the results on the message board before I leave for work.  I'm hoping we see close to 40% bearish sentiment.

Apple Computer announced some very strong earnings and guidance after the close Wednesday which should help the Intel news.  It's a confirmation that earnings may be strong across the board and the market really needed some good news.

Yesterday was another good lesson.  Just when you think you can't take the pain any longer, it's time to buy.  That's comes just after the sell signal you get when your barber starts giving you stock tips. 

That's all for today.  Currently 50% C, 25% S, 25% I fund.  See you tomorrow.

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