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Market Timing Alert: BULLISH Today's (Friday's) big rally has all the earmarks of the real deal -- a signal event marking a change in the market's direction. The market gapped up at the open, continued to rise, and closed very near the high. The major indices all gained more than 1.5%, with the NASDAQ leading the way with a 1.9% gain. What clinches the deal, in my view, is volume, which was surprisingly heavy for any day, much less the Friday before Christmas. There were also plenty of good-looking stock breakouts today. The economy may slip into recession early next year, as credit market and real estate woes continue to mount. Yet bull markets are known for climbing a wall of worry, and, in the end, it is psychology which is the most powerful determinant of the market's direction. And psychology appears to have turned positive. My technical indicators do not quite support this view. They are improving, with two now neutral and one bearish (one week ago they were unanimously bearish), but that still counts as overall bearish. I'm turning bullish anyway on the strength of today's big move. My bullish stance, though, hinges on the continuing improvement of these indicators. I think there's a at least a fair chance they may go overall bullish sometime next week -- even though next week is only three and a half days long. -KD, December 21, 2007
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* Net buy prices include commissions. Welcome to The Deen's ListTM, an e-mail stock newsletter from Deen Capital Management, Inc. My intention is to inform you as quickly as is practical regarding my stock market moves. When I buy or sell a stock, first I take care of client accounts, then I buy/sell for my personal account(s), and then, third, I send out this newsletter. Your feedback is welcome. Send e-mail to deenslist@deencapital.com. To subscribe or unsubscribe, include the word "subscribe" or "unsubscribe" in the Subject line. This newsletter is free to managed account clients. For a limited time, it is also free to all interested parties. Your personal information, including your e-mail address, will be held in strict confidence by Deen Capital Management, Inc. We will not share it with or sell it to others. All stocks discussed in The Deen's ListTM involve a high degree of risk. It should not be assumed that any stock discussed in The Deen's ListTM or purchased by Deen Capital Management, Inc. will be profitable. Past performance is not necessarily indicative of future results. The information contained herein has been compiled from sources deemed to be reliable; however, we are not responsible for its accuracy or completeness. The Deen's List Copyright © 2007 Deen Capital Management, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||