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Prices traded in a very tight, flat range today and closed up quite
modestly.  Volume slackened a little, still up, to +15% above average.

So, volume is high but prices aren't moving.  More investors than normal
want to buy stock, but they're finding enough willing sellers to provide
the stock without bidding prices up.  The question is: who's right?  I
don't know, but it ought to give us pause.  I know there's a lot of talk
in the media predicting a nice, if not spectacular, year ahead.  Belief
is for religion.  Investing is about evidence and numbers.  It certainly
doesn't seem like there's any rush.  I think we can afford to "pick our
targets", and I wouldn't be making risky bets on stocks that are already
"extended".

I heard a couple professional money managers today comment about
Walmart: "like the company, hate the stock."  Well, I don't know how
likable the company is, there seems to be two schools of thought on
that.  But they're making a good point: companies can be so successful,
grow so big, that their opportunities for further growth CANNOT continue
at the rate that made them the darlings of the Street.  McDonalds is
one.  Microsoft, another.  At that point they stop being good
investments.  There is too much risk they'll make a misstep managing the
transition to justify the PE ratios they've been carrying.

I think sometimes it helps to have a short attention span or selective
amnesia when it comes to selections for our shopping lists.  We need to
be able to clear away the "oldy & moldy; had their day, it's gone
away".

 Price    Vola-    Momen-   Volume   Oscil-   Summ.
 Change   tility   tum               lator    Index
 -__+     -__+     -__+     -__+     -__+     -__+

 __>_     __|_     __|_     ___>     __>_     ___|     01/26
 __>_     ___     __>_     ___|     01/27
 __>_     __     __|_     ___|     01/30
 _>__     _     __|_     ___|     01/31
 __|_     __     __|_     ___|     02/01

Timing Signals:  I don't use or recommend timing signals, but they're
fun to watch.  If I did though, well, I might use something like this.
(Be warned!!  It tends to whipsaw around signal points!)

Last Signal: BUY        Date:  01/26/06 S&P:    1274
Winner or Loser:  tbd                   By:     tbd

See my market tracking charts for '03-'04 and my investment strategy
study at my website(s):
http://www.xprt.net/~pgrogers/Pers.html
http://www.geocities.com/paulgrogers/Pers.html



Paul Rogers, paulgrogers{at}yahoo.com                       -o)
http://www.angelfire.com/or/paulrogers                   /\\
Rogers' Second Law: Everything you do communicates.     _\_V

... I never used to be able to finish anything but now
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