When you see the bout of profit taking in your stock, don't immediately dispair. Did the market make an impressive comeback the next day? If it's impressive enough, then that night you may want to make your shopping list for this morning and get in at the opening, all with market orders. When I want in, I want in, and I don't want to fool around trying to shave a few pennies here or there. Extracting the last fraction belongs to slow-moving markets, which is the last thing you want in a fast moving market.

If the Dow Industrials is powerful, say a 100 point or more gain, then we can work off that. Maybe there might be some mitigating information, like the bad news that advancing issues slightly trailed decliners. But when the good news is great news, say for example, cyclical issues like machinery, metals, and papers making significant gains after many months in the rat-hole, then you can look at the positive. Is this the beginning of market broadening and new leadership, then it will be great news for the market. If it's just a flash in the pan, then the Bull has to live off the billions that are still pouring in. Yes indeed, money makes the heart grow fonder.

Aside from watching the ever-important money flow, we must keep a close eye on the earnings reports which will come in starting now. That will show the direction and strength of this market after the rush of new money subsides. Sometimes a Bull market is off running and snorting, and has a way to go. When that is the case, stay with it, but be watchful for the unexpected. When things are too good, that's when something could come out of left field to spoil the party. Stay tuned.

The Market Pro