September 11, 2009

The Inside Scoop on the Stock Market

I rarely read market news, but on occasion I'll stumble on a story that demonstrates the "why" behind what my market analysis tools tell me.

To summarize, my market tools told me to buy big in October, sell into (what turned out to be weak) strength in January, buy big in February, go all in March, and sell into strength during the summer.

My market tools also tell me that we're pushing the end of a short-term market run, and that a correction is inevitable. But my market tools never say why, other than the obvious "a correction is overdue" in terms of market trends. Well, here's one "why" that seemed to make sense: Insiders are selling into this rally just like I have.

So my advice to you is the same as it was this summer. If you have profits, lock some of it in now. If you have cash parked on the sidelines, wait for the correction.

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