Not Buying It

  • On the ISE we are seeing extreme call buying. At the same time we are getting closer to last week's high. The market should have a tougher time making progress from here.
  • The market can certainly go higher but I don't view this as a low risk entry point. My wallet stays in my pocket until the market works off its overbought reading.
  • Microsoft has been showing some relative strength the past few days. I believe it is because they are a prime beneficiary of the weaker dollar.
  • A Chinese official said that the Chinese will continue to buy treasuries. This comes a week after Premier Wen warned Bernanke about devaluing the dollar. Who should we believe?

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