August 24, 2011 (KJ Exits Stage Left)

Darn. KJ got out today. But we still managed to have an up day without him. That's good. The S&P 500 positive/negative numbers so far this week:

Monday, August 22: 65.81/264.69

Tuesday, August 23: 63.60/255.57

Today, Wednesday, August 24: 66.39/163.04

That negative number of 163.04 is right where it was last week before he got in for a couple days. So things are still very negative in the S&P 500, my short-term indicator, which is good.

My long-term indicator, the Nasdaq 100, stayed exactly the same today. So far this week:

Monday, August 22: 110.76/76.16 = 1.45

Tuesday, August 23: 135.94/53.75 = 2.53

Today, Wednesday, August 24: 140.39/55.44 = 2.53

I am expecting a down day coming right up as people jump on the bandwagon. If the Nasdaq 100 had not gotten so high so quickly, I'd say any down day would definitely be a good buying opportunity. But since it has gotten so high so quickly, which still troubles me a bit, I'll say it's probably a good buying opportunity, with some possible danger of a severe drop.

So what do you think KJ will do next? It's kind of fun trying to figure out his next move. Is he thinking we're going to have another large move down like the last time we had a few big up days? Or is he thinking maybe this rally is different, that it's time for him to jump in on the up side? Probably the latter, unfortunately. But that's just a guess. You never know with KJ.

Rob