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I will be adding AMD to the swing portfolio tomorrow (do I need to say that as there is only one public portfolio?) and selling JNPR after its nice pop up.

As this equity market has pushed higher from it's June/July lows investors stood aside. But that appears to have changed in the last week according to TrimTabs

TrimTabs estimates that $2.5 billion was put into U.S. domestic equity mutual funds from Oct. 4 through Oct. 16, with $900 million flowing in Monday alone.

Yet when they should have been buying they were selling:

From May through August, when the Dow was testing its 2006 lows, more than $20 billion flowed out of U.S. domestic equity funds, TrimTabs calculates

In the trading room we had recently discussed what would bring 401K America rushing into this market. I actually though Dow 12,000 was a non event. But the constant headlines do seem to have brought them back to the table. Or was it when they opened their brokerage statements and saw they were under invested? Either way their back. Now if Wall Street just won't pull the rug out from under them we could get a decent rally. Only thing is 401K America's cost basis is pretty high and in the end they will learn once again - You Can't Time the Market.

Also if you are interested in stock scanning and backtesting - a fantastic site is MarketFilters.com. For a completely web based application it is some pretty powerful stuff. Although I have only begun to test it's features I think this is going to be something that will be quite a hit. Congrats to the developers for bringing such awesome tool to the trading community!

Have a Great Night

Dave Johnson

http://dayvejohnson.blogspot.com

dayvejohnson@gmail.com

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