In our last article on July 1, we didn't think the market could go straight up from that Dow close of 11066; the Nasdaq close that day was 2706. Today the Dow closed at 11193 and the Nasdaq closed at 2793. Surprise, surprise. The market likes to make fools out of all of us, and it just keeps making records.

The money just keeps pouring in, and you can't fight that. It won't last forever, but then neither will we. Yes, this market could turn on a dime, on some negative surprise, but you can't make consistent money betting on the unknown. Yes, I think the market has gone too far too fast, but it doesn't give a damn what any of us think. It has a "mind" of its own, and right now it wants to go up.

Yes, I'm continually on the lookout for a reversal, but we must go along with the market and be light on our feet, whatever that means. I'm going to keep investing until the party is over, but I'll be wary. It's like having a lot of laughs at the bar, and keeping your eye on the exit at the same time.

Like most investors, I have a laundry list of what I would like to buy. I've been waiting for lower prices, but the market doesn't want to accommodate me. With earnings coming out big-time this week, the market is smoking me out to take action prior to the earnings announcements by companies on my list. This week I'm expecting reports from SanDisk around Wednesday, July 14, and C-Cube Microsystems on Thursday, July 15. I will phone them to confirm the dates and whether it's before or after the close, and you should do the same for those stocks in which you're interested. I think Pfizer is due around July 15, but I think it's too soon to buy it.

Anyway, you can't be dogmatic about the market, because if you do, you'll get buried. You've heard Marty Zweig say "don't fight the tape," and he's earned a lot more dinners off the stock market than we have. You should try to predict what the market will do, as some idea is better than no idea. But when results differ from your anticipation, you're better off going with the flow. After all, you have nothing to prove. You just want to be right more often than not. As for me, I prefer second tier Biotech/Genomic and Technology stocks. I'd rather be earlier on the move, rather than in a relatively mature situation. Stay Tuned.

The Market Pro - July 9, 1999