Dow to Record High. Now What?

… a fantastic run which has culminated in a record high for the Dow today.

All in all I still feel it’s a gamble playing big on the long side up at these levels, but at the same time it doesn’t pay to fight the tape. I’ll continue to play the long side but choose new long entries with lower risk (ie. initiating positions in high quality stocks with considerable momentum and near major support levels) and maintain a decent cash position with a smattering of shorts). I’m always comforted by the fact that as an individual investor I can reposition quickly and avoid large losses.
Oct. 3, 2006
Tate Dwinnell, SelfInvestors.com
http://investing.typepad.com/tradingstocks/2006/10/dow_to_record_h.html

I share Tate Dwinnell assessments. We have been waiting for the other shoe to drop for about three years. This can’t keep going… Well, actually it can and it has. But is this the point where the repeat of an old pattern kicks in? Could be.

AHEAD OF THE TAPE: Cold Water Club (Wall Street Journal)

1972 – On November 10th, the Dow closed at 995.26, breaking the six-year-plus record of 995.15 from February 1966. Then after peaking at 1051.7 in January 1973, it fell, and took a decade to recover.
One Page Annotated News Summary
Posted on Oct 4th, 2006
http://seekingalpha.com/article/17881