What a market. What a short-crusher market. This is one of the most powerful market upside moves that I have ever seen. Up to now, it was mostly the Fed's easing of rates by 1/4%. Today, it was a Goldie Locks election day gift. A lessened impeachment momentum coupled with no strength for Federal goodie-bag distributions. Ah, how the markets love Mexican standoffs. The status quo is just fine thank you.

Well, this market is not going straight up forever, and is overbought and overdue for a correction as early as tomorrow. This vulnerability will be exacerbated by any unexpected event, particularly international. Also, any inkling that the Fed may not lower rates on November 17, is sure to give this market a large dose of gas.

Right now I wouldn't buy anything, and that goes for my favorite small cap's. When investors realize that this is likely to be the last good opportunity for several weeks to sell into strength, they will do so with a vengeance. So run, don't walk to the sidelines. Stock Lent is in full force and effect.

This is a good time to make your shopping list, that hopefully you will fill when tax-loss selling goes into high gear. Be guided by relative strength, as well as strong fundamentals. If you have any selling plans, now is the time to do it, when you have customers. Don't wait until prospective buyers have run for their bomb shelters, for you to start selling.

These times call for a lot of will-power. With many stocks having big price moves and making large gains, its tough to hold back and sit on your cash. Patience moves mountains a wise man once told me, and I believe it. So just sit on your checkbook and wait for tax-loss selling season, which may start any time. While you wait and battle unfulfilled greed, be comforted by knowing that when the market has its sell-off, you will buy stocks at prices that will delight you.

Yes, all this will be made possible by your having accumulated cash, and because you are ever mindful of the value of money. Remember troopers - Cash is king!!! Stay tuned.

The Market Pro - November 4, 1998