Don’t let Rallies Fool You – Take Profits
Yes the market is near a bottom. But has the turn around happened? No! These one-day rallies are giving you the opportunity to be nimble and sell some of the stocks you bought yesterday. Of course, if trading is not your thing, sit tight. Like I said before, the market will have bottomed when S&P 500 hits 800 (+/- 2%). Until then, rallies are a trader’s dream.
– Faisal Laljee
Totally agreed with you man!
I expect stock market to rally for a while as market is oversold.
During this period of time many investors will think market has bottomed, and many will buy aggressively.
As this rally is mainly driven by sentiment and not fundamental, poor earnings announcement from companies will push the stock market even lower after the party is over.
Are you an analyst from Morgan Stanley?
Brendan – I am an independent investor and analyst. Not affiliated with Morgan Stanley
Looks like the market reached the levels you were predicting, so do you think this is the bottom?