"CAPITAL IS NOT SCARCE-VISION IS"

GRUNT... grunt... make way for the bulls. I hear a stampede.

I was wondering what the catalyst would be if not Citigroup- to send the markets soaring after a larger than warranted swoon last week. I certainly put my money into CITI at 29.85 - it was the last chance to get into the stock at such depressed levels. Its up to 32.50 already this morning as the confused investors/bargain hunters/bulls start digesting the fact that the ABU DHABI infusion of funds into the compnay is POSITIVE news.

There is some more sense that the Fed will cut rates again in December- based on comments by a `top Fed official' to that effect. We cant put a gun to his head if the Fed does not cut rates... but for now the market gets a positive comment and reacts fast and furiously before someone distorts the hope.

The mantra for me as a trader is sell on a rally. Not because we will revisit the 12800 on the DOW anytime soon... thats over and done with. But because we are in the money in some stocks too fast. EBAY in at 31- on Monday. A 3 buck rally is enough for me as a trader. Will rotate into JWN- at 34. I believe JWN (Nordstrum) goes closer to 40 and not 30 as we proceed to the year end.

Look for a triple digit rally into the close today- I am boldly saying the reversal is here to stay- we shall not collapse at the end of the day as we have on many occasions last week. And that will spur momentum on the upside... thank heavens... for a change. Oh we already have a triple digit rally- I was referring to a triple digit rally in the NASDAQ (tongue in cheek)- too much optimism will get me into trouble but who cares... I am no Jim Cramer - no one reads my blog anyway.

I am spotting bottoms in some stocks. LOWES looks good at 23- for one. Housing stocks- am afraid to repeat -they have bottomed. Dont catch a falling knife... but to my mind the knife is on the floor. Pick it up, it wont hurt ya now. Come on, some of these have good balance sheets. Am tired of hearing about the `uncertainty' - in housing. Am holding onto DHI - and KBH.

On the other side of the trade, when no ones paying attention to oil stocks, am looking to buy some puts on XOM and SLB once again- as oil looks like tis goin to sub-90 before it goes toward $ 100 again.

"Capital is not scarce, vision is!" someone once said. A lot of the capital abroad, the likes of the ABU DHABI kind, will be put to work buying American stock... and if we stop being blind-sided and look at the reality- for now it looks like good news. If the emerging markets would rally as foreign investment soared to new levels... its our turn now.

Once again we here were right in not `throwing in the towel' or `folding under pressure' as the markets `corrected'! Will bring more trades your way- as the market settles down... hang in there.