DJIM #38 2009

Despite the last week’s final box score of SPX up 2.5% on the week, we are going into a FED/ IPO/ RIMM week with a continued  ‘cautious’ stance noted late last week.   This is not a fear factor,  it’s just prudent money management of narrowing down number and sizes of positions awaiting a new catalyst.

As discussed,  it is becoming difficult to chase strength as the risk /reward is just not there entering a position of size on many of the stocks we’ve been playing the last 2 Q’s at DJIM at this stage.  We want better entry points now on many of our favourites.   In the meantime,  we hope to find a quick new one’s like CTB  last week to trade for a few points.

So, the best thing to do is get ‘selective’ until earnings sets the tone either way.   It is unreasonable to think the market will get out of hand to the upside prior to earning reports unless some very positive unexpected catalyst comes up before.  

Last week, we our lead was the upcoming Barclays financial Conference to watch for as an upside risk. This week… In the last journal, we noted the number of IPO’s coming up  that will give us signs on the health of the market, thus, the SP tape direction.  

Everything else remains the same, the Bull/ Bear tone , the technical picture.