Trading range and positive returns for 2010

The Dow Jones Index leapt 197.84 points, or 1.9%, to 10860.26 and rose 2.4% this week, extending its upward rise to four weeks. For the month, the benchmark is up 8.4%; it’s the best September since 1939 and, as a result, we’ve seen investors race into stocks and commodities. The increased appetite for risky assets is a sign that investors feel that there won’t be a double dip recession.

The market has had an impressive run, but we believe it would take more positive economic numbers in the coming months for the market to move higher. The market is still currently trading on a “technical basis” confirmed by the current low volume environment that is exhibited in this rally. We are currently selling overweighed positions of Gold and QQQQ and then buying them back when the market retreats back to the lower trading range. We are also still accumulating China, oil and emerging markets.