Mid-week update

Good morning all,

It's Wednesday and the DOW is currently trading above the 13900 level which means I made the right choice in exiting my SHORT position yesterday. This market is puzzling to say the least. I don't like to bring up fundamentals but the news just keeps getting worse yet the stock index futures find some way to move higher. From a technical perspective this is actually quite positive. So the only question left is why am I not bullish on stocks? The answer to that isn't as simple as you might think. I'm not normally a pessimistic person but I get uncomfortable when I see situations that occur, especially in the financial markets, that are swept aside as if they are of little consequence. The current debacle in housing and the commercial paper markets is just the tip of the iceberg and is anything but inconsequential. It's going to take time to realize the full nature of these events and I can't see how the markets can continue to ignore the potential fallout that I still believe is going to occur. Just look at Gold and then ask yourself why it's continuing to rally if all is right with the world. As I'm fond of saying, we'll just have to wait and see how this whole thing plays out.

Dale F. Doelling
President and Chief Market Technician
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