Market Poised To Go Higher

Small and Mid Caps are beginning to heat up and the NAZ has been steadily gaining, in what appears to be an acceleration of the rally.

Oct up to this point appears to be a pussycat, not a bear. The bear is being put to death. The animal spirits will run wild until they duplicate 2000 bubble euphoria.

Falling gas and inflation fears fueling the run, as well as goosing by those who want to see the Repub's maintain status quo. We are however probably putting in a multi year high, with avg Bull market lasting around 4 years, this is one will be in matter of days from OCT 2002 lows.

The market has come all this way without a 10% correction, rather rare, and it has been a record setter for more than 4 yrs of bullish plurality.

There remains too much bearish sentiment however and predictions of a selloff in OCT that has yet to appear, and likely will not.

But make no mistake about it, no matter how high we march, this IMHO is the ending move from the 2002 lows to complete this bull market.

Once a trend gets going it is hard to stop until it exhausts itself. I see no exhaustion here.

The market should correct soon, maybe next week, for now I don't expect it to amount to much.

NO, I am not chasing this last piece, and I would be on guard for any blowoff move or early strong up day that reverses to red.

Energy may have bottomed short term, USO PTEN VLO XLE put in solid days, I think more downside is possible.

PGH is yielding near 14% as an energy trust.

Watch Transports to see if they can better their 2006 double top, for now we have a Dow Theory non confirmation in place.

D