Commentary for today

[HenryTo]

Dear Subscribers,

Bad news: We are currently experiencing some technical problems with our commentary and so we most likely won't post it until later today or even sometime this evening. I apologize for the inconvenience.

Sincerely,

Henry

[HenryTo]

Dash,

Also, the differential between Lowry's Buying Power and Selling Pressure made a new all-time high as well. Along with the fact that Richard Russell's Primary Trend Indicator (PTI) also made a new all-time high yesterday. I agree that the cyclical bull market is still intact, but as a rule, I don't like buying on breakouts and neither do I like buying when the market is overbought (as it is now).

My scenario calling for a significant correction sometime in the next three to five months is still on - given that the global economy is still slowing down and given the overbought conditions currently in the market. We have not had a significant correction since 2003 and I think one is due pretty soon - most probably sometime within the next three to five months. Only until such a correction/shakeout occurs can the market sustain an uptrend going forward.

Thanks,

Henry

[dash]

NYSE A-D line made a multi-year high yesterday. Historically, when this has happened before the index itself made a new high, the NYSE has gone on to make very strong gains.