Tuesday, June 07, 2005

Technically Speaking, Market Analysis and Theory: Dancin' in the Streets

Technically Speaking, Market Analysis and Theory: Dancin' in the Streets

Although I am a BULL, I enjoyed reading the post on Ron's site this morning. It has been awhile since I heard the old saw:

When you are laughing it is time to go to the bank;
When you are crying its time to be buying.

I am laughing because of stocks in many industries. UNH is up $1 this morning, MOT is up $.50 and of course my dear airlines are all doing well. This market is going up with force. I do not think it is time to go to the bank but time to ride Ken Fishers Bucking Bronco.

Owners of Google are no doubt anxious. I cringed when I saw Google has its own ticker at CNBC. On the other hand, the first anecdotal stories must be "disproved" before all ration is lost in a BULL market. The concept is much like the idea of testing lows. If you bought the airlines during the recession, a couple of years later you had ridden the group a long way up and a long way down. If you bought after the lows were tested, you have had a much more enjoyable ride and it is one that can continue.

With several accounts up 25% during a difficult year, it is hard not to dance in the streets. It is hard to be patient when you have big winners. The fears of a Google implosion ignore the gathering momentum of internet publishing. EBAY and Yahoo show a depth of understanding and some old line media outlets are making moves (TWX is expanding access through AOL, WSJ has a growing online presence, NYT has purchased About) but online publishing is putting the hurt on old ways and making money in new ways. Online players are generally playing a good game of tit for tat--no serious price discounting to win market share. (EBAY is offering free classified adds in numerous cities with extra charges for pictures or extra words. However, as Craigslist has shown, automated classified sites are very low costs to maintain and publish.)

The bottom line is a strong bottom line for as far as the eye can see.