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Wednesday, October 10, 2007

When The Momos Go Parabolic...

Due to time constraints, today's post will be a short one.

I'm throwing up a few of the big momentum (momo) names that have been powering the market higher. Note the chart scale is no longer logarithmic. This helps illustrate just how fast these guys have done a moonshot. Note: the momo names go parabolic at the very end of the Bull market cycle. Unfortunately they can keep running for quite some time, so picking at top isn’t exactly easy… That being said, with all the indices at new record highs on anemic volume, a pullback is in order. The catalyst may very well be a disappointing earnings season. Alcoa started things off with a less than stellar report as did Chevron. Trade cautiously... book some of those profits.