Another shot was fired across the bow of the Internets and tech companies today. Apple, Cisco, Google, HP, Sandisk, and Yahoo were down. Only Ebay was up. Although most of the non-Internet investors are glad to see them possibly get their comeuppance, it doesn't help the market as it removes some speculative enthusiasm. It's better if they just go sideways for a while, like 10 or 20 years.

I think today was mostly a bout of good old-fashioned profit taking, after a string of successive up days. The money is still out there, and it has to find a home. This market is still going higher, but I would concentrate on the beaten-up issues. Those that have done so well are still good holds, but I wouldn't make much of a new fund commitment in them unless the buy was just for a short-term trade.

Remember, we always have to be vigilant, in case our strategy runs into unexpected problems. Stay tuned.

The Market Pro

---

It's a positive thing when the market show a good resilience even with varied tech stock news (think Microsoft, EBAY and Yahoo). This market's morale is particularly driven by high-tech stocks, and as long as there is eagerness to bid them up, we won't see big general declines. No doubt that's because technology is America's trump card in world competition. Even with all the outsourcing, innovation is still going strong at the high tech companies based right here in the good old U.S.A.

The other side of the coin is that the "best" high-tech's are too expensive on a P.E. basis, so I would wait for any pull-back in price to buy in. But if you own any, just hold them, because market timing will hurt you.

In the meantime, accumulate cash for a chance to buy in lower. Of course, if your research / information indicates that there is a special situation deserving of your buying in, than do so. Make up your mind and just do it, because in the market, hesitating is no virtue. Stay tuned.

The Market Pro

---