Weekly Review (8/28/06—9/1/06)

Monitoring the Volume

The Dow Jones industrials ended the week up 180.10, or 1.60 percent. The SP 500 rose 15.92, or 1.23 percent, while the Nasdaq gained 52.87, or 2.47 percent.

The tech stocks are getting stronger. It is a positive sign for the market.

The people are betting on the Fed will not increase the rate in September. After the Labor Day, we should see a relay. When the buying power is strong, it is the time to get a long position.

I think the current opportunity is still in a short period. I suggest my readers to focus on the tech stocks for now. Please watch the volume very carefully. You should avoid a stock with relative small volume but big price advance.

Remember to cash your gain and don’t be greedy. Be careful on Friday.