The call for this week: The indices, in the short-term, are entirely out of internal energy and over-bought. To me, that counsels for caution despite the half-hearted Dow Theory buy signal generated by last Friday’s new reaction closing high by the Industrials, which confirmed the D-J Transports sprint to new all-time “highs” last week. Whatever happens in the near-term, there is nothing to suggest the path of least resistance is not higher over the intermediate and longer-term. Therefore, I would accumulate favored stocks, as well as the indices, on any ensuing pullbacks.
