Tuesday, November 13, 2007
Rejoice in the volatility
This market continues to be characterized by periods of severe over sold conditions, leading to significant reversals to the upside.. There seems to have developed a tolerance to climbing oil prices, but price spikes in the liquid gold continue to bring the house down. Look for a big rally in stocks, oil prices will recede on the expected warmer winter, the dollar will begin a slow accent and China and other emerging markets will decline from an extreme over bought position as inflation begins to pick up. Investors money flows will favor the US and its much undervalued markets, particularly tech and bio tech. It may be sustained or just short term to early to tell yet.