Market Changes?

  This was another good market week with some interesting developments.  There are a couple of things I want to point out, and I couldn't help but buy another stock this week.  We'll see how that works out for me.

  First, everyone probably now knows about the SEC charges against the Goldman Sachs folks (I think there are a couple now) for basically defrauding investors by selling derivative products that they were betting against.  This had a chilling affect on the market in an instant, mostly because the market anticipates more legal actions.  Remember that the market tries to look ahead at a generally accepted six months.  We will see how this plays out.

  Second, we started to see the pullback we need as mentioned above, albeit quite a sharp one.  We have been on quite a run since March, grinding ever higher with a record number of stocks making new highs.  Basically, even the best growth stocks are overbought at this point and stretched well above their short-term moving averages.  A pullback is healthy and welcome.

  Third, its been interesting to note that even on sharp pullbacks, the market has yet to close at its lows.  Anyone else noticed that?  Late-day buying has picked up the market on each lower day, sometimes causing us to close higher, sometimes not -- but never at the day's lows.  I wish I was smart enough to know what this means; it's just something I have noticed and will continue to watch.

  All in all, the market will do whatever it does.  I can only react to it, right?  For now, it looks like we remain in an overall uptrend, so I remain heavily invested with only a little cash on the sidelines.

  With that, I have been watching Amazon (AMZN), as it is a great stock that hasn't been acting all that great this year.  They report earnings this coming week (Friday I think), so I bought in on its small pullback late this past week.  If they report well, I don't see this stock succumbing to "sell the news" action, at least not like some of the other stocks.  Keeping my fingers crossed, but its a good buy regardless.

 Oh, I am reading a book by Judge Andrew Napolitano, "Lies the Government Told You".  So far, so good.  I really like this guy, right up there with John Stossel.  He is a true Libertarian, and I hate that he always gets lumped into the conservative GOP camp by all the far left liberals, you know the ones who call Fox News the "Faux News"...haters...ugh.  Anyway, I will review the book here when I finish. 

Have a great week and good trading!