What a market! What a market!

Dow 11014 a little over one month since closing above 10000 on March 29, 1999 is incredible! The Shorts are on the run, and in full retreat. The South may rise again, but it ain't today.

Just think - the Dow first closed above 6000 on October 14, 1996, above 9000 on April 6, 1998, and 10000 thirty five days ago. Obviously we can't keep up this rate of Dow advance, or we would be at 20000 at year end. But everyone didn't get rich yesterday, especially the Internets. Amazon was -21 1/8, AOL -9 5/8, EBAY - 17 , Mindspring -5 11/16, and Yahoo -12 1/8. Ah, the sweet smell of tulips! You may even be able to buy bulbs on the Internet.

And what about the poor shorts? They are holding fist-fulls of Puts and naked Calls, all running for the bomb shelter. If they get there alive, they'll find other famous Bull market fugitives named Dudak, Eliades, Grant, and Prechter. I hope I spelled the names right, but at least I got the market right, and with a minimum of exuberance. Fighting the trend will never do you any favors.

Let's have more fun with the Internets. There was a piece in the last Barrons about bloated Internets, and that didn't do them any good yesterday. No kidding. If I like those valuations, maybe I'll buy a hamburger stand for $50 million if I can get the backing. When the honeymoon is over for the Internets, and I think were starting to hear some serious arguing, it is going to make ugly look pretty.

In the meantime, enjoy this, because it won't last forever. But at least we can be smart enough not to try to predict when it will end. You know how to protect yourself - do your homework, diversify, no margin, don't hold more than your comfort level dictates, and buy with a 3-5 year target in mind. And when in doubt, sell half and keep half. Should you wind up with a little cash on hand, don't worry; there are greater sins. Stay tuned.

The Market Pro - May 3, 1999