DEEP THOUGHTS

Generally buying 10 day highs and selling 10 day lows is not a profitable experience, witness these results as studied by Connors and Sen.

I am just wondering if this time is different as stocks approach the May highs on the heels of lower gasoline prices. My question, what happens if retail sales pick up on the increased cash in consumers pockets as gas prices fall. Will the retail sector reverse and be the place to invest over the next few months? The chart of the retailers isn't giving a screaming buy signal and I will go back to the lousy looking charts of the banks and brokers; until they start acting better, the market is going to have trouble moving higher.

One other thing, it is the end of the month and we may get some month end "markups" today and tomorrow as some managers try to gun their stocks.