Diamonds and Dogs
Are you a Believer?Do You Believe?
On this date in 1933, the Loch Ness Monster was "photographed" for the first time in Scotland. You can't argue with a photograph, right? There are still some non-believers in the recent stock market rally. The Dow hit new yearly highs on Monday, gaining back to the level of October 8th of 2008. But the skeptics are pointing to the low volumes, and they may have something. The 200 point gain on Monday was on 4.6 billion shares and the yearly average daily shares are 5.78 billion. Even taking into account that this is a holiday week, I am sure the bulls would rather see explosive volume into the rally. Everyone seems to want to be in, but no one seems to be convinced. The question becomes what is the upside from here and how does that compare to the risk of a 10-15% sell-off. The greater fool theory in practice.