Tom Scollon
Tom Scollon
Chief Editor

As I watch the DOW going up and down like a yoyo I ask myself again who is buying and sorry - what they are smoking. Whatever they are on I don’t want any.

If the DOW shoots up 300 points as it has done a couple of times in recent weeks our market follows suit and if you respond then you are buying on an ‘up’ day and paying through the nose. This is an expensive way to buy.

And as we have also seen the DOW falls 300 the next day and if you follow the DOW again then this has been an expensive couple of days of shopping. I can hear you say you are not guilty. But someone is.

Take a look at the DOW:

click chart for more detail
click chart for more detail

Now I admit the DOW has been up and up since mid July and I agree it is probably sour grapes as I did not buy on July 15. But this ol’ ticker of mine just could not handle the ups and downs. Just look at the volatility.

Besides being in cash for last several months has made me lazy – kicking back and letting the daily interest kick in. So apart from not wearing losses a lousy 8% has not done me any harm.

But I am ready to get back to it and have been in training on the quiet – every day scanning the top 400. It is not so much I am eager to buy right now but rather I have to build up my match fitness as I know I am going to get a run on the field soon. And you can’t build match fitness in days – it takes weeks. Seriously.

I have no reason to doubt the projection above so I am looking for a low about October and about 10,000.

Here’s mud in your eye.

Enjoy the ride

Tom Scollon
Chief Analyst