Michael Sheldon Profit Quotations

The markets remain overbought at current levels and could see some profit taking at any time. However, market internals remain very positive, so investors are reluctant to sell much into that. Given this scenario, we are likely to see more gains through the rest of the year, and some consolidation in early 2005.

The markets are rebounding a little after several sessions of weakness that stemmed from rising oil prices, rising fears of terrorism and a sharp decline in the dollar. Those issues have somewhat abated today, but they are issues the market will continue to face over the next few weeks. As a result, you could see more profit taking.

Temporarily, the market may have run out of gas. On a technical basis, we're looking overextended, so you're seeing a little profit taking,

At the moment, I'm cautiously positive about the market, recognizing though that as we go through the year, the economy and corporate profits are likely to slow.

Once bond yields started moving higher again, investors reflected on the interest rate environment and decided to take profits off the recent highs.

In terms of the broader market, it looks like we may have entered a short period of consolidation or profit taking following the strong advance at the start of this year.