Well, well, well. I took off for two weeks and the market had a good showing, led by the Nasdaq up 12.6%. The Dow Industrials were up 7.3%, the Russell 2000 was up 6.5%, and the Dow Utilities were up 5.4%. All this happened since Monday, August 31.

What's happening? You can get any kind of answer you want, but the honest answer is "who the hell knows?". That said, let's give our view. We know there's a lot of money on the sidelines, looking for an opportunity to get in. And sure, the Fed may lower interest rates a 1/4 point when they next meet on September 29. But I don't think Russia or Asia are in better shape than they were, and our Oval Office acrobats are probably no more respectable since last reviewed by Jay Leno.

I still consider this to be a trap, so use it by selling into strength. Accumulate cash. You need patience in a market like this because it looks like the bull market is resuming. It isn't. Come December, these prices will look high in comparison. But if you have cash, you will have a shopper's field day. Remember - CASH IS KING!

The Market Pro - September 16, 1998