The call for this week: Despite the short-term overbought condition, which likely needs some time to be corrected while the SPX’s internal energy level is rebuilt as it challenges the all-important “energy level” of 1420 – 1422 often referenced in these reports, I think the upside should continue to be favored. As my friend Frederick E. “Shad” Rowe, captain of the sagacious Dallas-based money management firm of Greenbrier Partners, writes:

“The stock market will always do what it must to frustrate as many investors as possible. But as to its long term direction, I have little doubt. It is up. And as to the magnitude of that move, I would say ‘very large.’ As to timing, I am a little less clear. I do believe that patience will be rewarded and that the current opportunity is so compelling that the real fool’s game remains, as it has throughout my career, attempting to time the stock market.”