AQ is on fire. Technology continues to break to new highs. The NASD Who knows where the top is, but I would be very wary of adding new money at this juncture, and would use any continued strength toget out. As I�m looking at a chart the Q�s could easily go higher, but the risk now outweighs the potential for rewards. INTC and MSFT are looking expensive. Yahoo, Amazon, Ebay and AMAT have PE�sthat are unreasonable. That doesn�t mean they can�t get more unreasonable, but it the market has become too optimistic. The fundamentals for some of these companies have improved, but if thefundamentals took one step forward the underlying security has taken 5 steps forward. Either the fundamentals have some catching up to do, or the equities are going to catch up the other way. My betis to look for spots to sell the NASDAQ, including Biotechs.

Looking at the Broader Market, we are still in a trading range. The Dow broke out of it�s range and has a shot at 9800 before year-end. However, S&P is stuck between 102 and 96 on the spiders. This next week we are looking for selling. Friday�s reversal was significant. Our crystal ball says the S&P will end the month down 2% and Dow Jones will be flat for month. Save your money, there will be better opportunities down the road.

For the previous twelve years, Tom Hayden has been a NASDAQ Market Maker in a majority of the stocks listed in the NASDAQ 100. Over that time Tom has traded several billion shares of NASDAQ listed securities. Individual Accounts Managed by Tom Hayden are up 10% year to date. Questions, comments and inquiries are welcome and Tom can be reached at TEHayden@advantexmail.net. –

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Disclaimer: We hold no positions in stocks that are mentioned in the current week�s write-up. Any statements issued are opinions and should not be relied upon for market decisions. Mr. Hayden�s columns are not intended to constitute investment advice or a recommendation to buy, sell or hold any security.