7/8T8:41

Market Comments: 2nd day of accumulation

Getting a buy signal on the averages. the signal is weak. Not in unison on all indicators and no alligator. However, due to our short positions it is prudent to go long the indices to protect the portfolio over the short term.

Steel Stocks:

We are short the steel stocks that have put in tremendous inside out reversal weeks last week. The stocks received an upgrade this morning and are looking strong at the open. Since we are short only 1/2 of the position we want to be patient here and add to the short as the stocks move into their overhead.

Rules of the Road: Long different than Short

Add to long positions when the 60 min. signals warrant. Add to shorts on rallies into overhead. Waiting for sell signals on shorts usually gets you in too late and opens you up to snap back rallies.