Wednesday, May 09, 2007


New highs on the Dow yet again with a 50+ point gain. This is almost unreal. I'm not complaining with my long positions going through the roof in SNDK MU COGT MMS, NYX JADE FFIV RVBD USD and so on. I do think this will end with a Chinese market crash. The Shanghai Composite crossed 4,000 today and I think maybe another 100-200 points to the upside followed by a collapse. Maybe another week or so. I like bull market like any investor or trader but, I also like to see healthy market with pullbacks of 2-3% every so often. Up 25 of 29 trading sessions on the Dow and yesterday hardly constituted a downday with a gap down open and spike lower, followed by a rally which almost put us in the green. We may still have a healthy pullback in the coming days but something tells me we are past the point of no return.

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