Terrible Arithmetic's...... And Today's Report 5-15-06


All,

As we observed the market tank last week on interest rate news, it was apparent that random events do not an orderly market make for almanac economics.......

Thus we continue to view the terrible arithmetic's of survival for the longer term investor within today's choppy and uncertain markets.

If you expect upside potential, best bet is to diversify based on strong fundamentals, but even that ploy may not pan out in what appears to be an increasingly failing market.

For the active trader who trades for a living, however, the picture is far less glum.

As we have learned, we can go both ways at the drop of a hat and play our cards CLOSE to our chest, as long as we have proper charts to "SEE" the trades.

...."If you can SEE a successful trade, you can MAKE a successful trade...." to quote a good friend of mine -

As is typical of the trading community little volume is brought to the table on Monday, usually rendering a low volume day. People recuperate from self-made long weekends and party binges.

Why not?

We don't work for the 9 to 5 crowd.

As also expected, the marking is TANKING big time in pre-market this morning, as the market expresses displeasure with the powers that be, oil, interest rates, wars, killings, the dollar, ad nauseam.

The answer may be to re-align our investing to sectors moving in contrarian fashion, which is obviously quite short within nearly ALL sectors, at least at this point.

We'd best be lining up our shorts, IMO this AM, or wait for a major rebound caused by short squeeze and/or bargain buying if we wish to put on any longs.

Safe Trading.
Vic W