Stock Market Soars

This marked one of the best up days ever on a percentage basis. Even more remarkable was the fact that the major part of the move came all in the last hour of trading. We have seen the last hour of trading bring significant trading swings over the past few months. This is again a sign of the extreme volatility we are experiencing in the market, which moves the market in both directions. We are encouraged with the move up today and volume was up as well which lends support and conviction to the move. However, 10% is a huge move on a day with little significant news. An interest cut is widely anticipated for tommorrow, and that might account for some of the move, but we would caution investors to be careful. Volatility is still extremely high, and the market could easily reverse and drop another 10% tommorrow or the next day. We hope that doesn't happen, but wouldn't be surprised if the market slid some, as this was just too much gain too fast. However, longer term, we think the market will move up from these levels, but surely will be rocky along the way given the extreme volatility in the market. We currently own Flowserve (FLS) and would strongly recommend purchase. This stock has been beaten down to unbelievable levels. Flowserve just announced strong earnings and should continue to do well even in a weak economy. Now is a great time to buy given current price levels.