"I've seen this before."

Mondays, I have found, always hold the most potential for surprise from the perspective of a market trader. Take today for example. Last week, the Stock markets remained strongly entrenched in their long-term downtrends with the NASDAQ hitting a 14-month low. But what a difference a (Mon)day makes! The DOW has ripped a limb off of the bears today with a near 200 point advance. I sometimes feel like Chance the gardener in the movie "Being There". Chance wasn't the brightest bulb in the drawer but he would occasionally say something brilliant. "I've seen this before" he would say. And just in case you've never seen the movie, do yourself a huge favor and go to your local Hollywood Video and rent it.

What I'm trying to say here is that these rallies are all intended to bring hope back to the masses of investors who wouldn't know how to SHORT the markets if they had a gun to their heads. So, lo and behold, we have a rally underway and hope springs eternal! What we'll probably see is an hour or two of buying tomorrow and the resumption of the downtrend. In other words, we have another great opportunity to get SHORT the Stock Index futures. I've been SHORT since May and I've done well. Could the market rally last longer than just a day? Of course it could but I'm betting it won't. Never be afraid to bet your conviction.

Dale F. Doelling
Chief Market Technician
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