Dangerous Times

Dumb money always assumes a trend will continue indefinitely. They buy at tops and sell at bottoms. I’m going to show you something and caution again that now isn’t the best time to keep chasing the stock market. Yes the Fed will probably manage to keep the market propped up ahead of the rate hike on the 26th but they are sowing the seeds of the next crash by not allowing the market to correct naturally.

ICL’s have to break the intermediate trend line… and they usually move well below the trend line before a final bottom. In the chart you can see where that trend line is and the magnitude of the correction that lies ahead. This is why I say be patient right now. There’s no need to chase the market and risk getting caught when the correction begins. I wouldn’t waste time and money trying to short. Just sit on the sidelines until that trend line gets broken, and sentiment turns bearish. That’s when you will get the next buying opportunity with a lot more potential than trying to pick up a few pennies right now and risk getting steam rolled if you don’t exit in time.

 

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.