I’m getting back into the swing of things after being out of town.  Things look fairly stable this morning and the market continues to be healthy regardless of overall macro concerns.  My opinion is that we will see continued strength into the end of the year as managers chase performance.  However, next year could be a challenging environment as we work through debt issues, a possibly slowing economy, housing overhangs and a presidential election.   But that’s all farther down the road.  Today there is little moving:

Diana Shipping is up another 3% plus as Bear Stearns updates price targets on the ocean shippers.  I sold calls this morning to hedge my position as it has had a very nice run and there is ample premium in the options.

Capella Education hit a new high yesterday and then was downgraded overnight by Stifel Nicolaus.  The stock is down 4% this morning, but that is a small amount compared to the recent run.

After an incredible September run, Acorn International has pulled back to consolidate some gains.  I would watch the $20 area closely and consider adding to the position if it pushes above this level on volume.

Coach is back below the 50 day.  I am not short the name at this time, but if the overall consumer becomes weaker, I will likely move back into this name as it may have more difficulty than most consumer names.

Tempur Pedic will announce earnings next week.  The stock looks a bit tired after such a strong move this year.  With the market making new highs, it is important for TPX to keep up.  If they are not able to keep momentum I would exit quickly.

Keep an eye on volume today as the market consolidates.  If we pull back on light volume and advance on days with strong volume that is a positive sign for continued gains.

ZDS