Monday, October 13, 2008

Today is a Bear Market Rally. Sell into strength to preserve cash

That's correct, this is a relief rally because of the coordinated moves in the EU. If your stocks have scratched back a sizable gain, you should consider selling some of the stock today as the rally continues and more tomorrow if the market continues its rise. Because, the markets will drop back to the recent lows in days to come and will set new lows. It has happened many times in the past and if you observe how the Nasdaq dropped from the Dot.Com bust in 2000 to 2001, there were many times where everyone thought the bottom was in only to see the markets drop again to new lows. Let history be your guide.

Check back as I will continue to write about markets here. When we are at the bottom I will declare it. For now I am trying to help you save your funds and preserve capital until things stabilize. We are not stable yet and have quite a long way to go.

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