{"id":35965,"date":"2013-02-06T00:52:39","date_gmt":"2013-02-06T05:52:39","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=35965"},"modified":"2013-02-06T08:30:52","modified_gmt":"2013-02-06T13:30:52","slug":"dont-be-long-and-wrong-on-this-stock-market-rally","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/02\/06\/dont-be-long-and-wrong-on-this-stock-market-rally\/","title":{"rendered":"Don\u2019t be Long and Wrong on this Stock Market Rally"},"content":{"rendered":"

By MoneyMorning.com.au<\/u><\/a> <\/p>\n

In today’s Money Morning<\/em> I’ll show you why late-comers to the recent stock market rally shouldn’t panic. As I’ll explain, the market is at a key point that will likely catch a lot of investors and traders off guard.<\/p>\n

<\/span><\/p>\n

Don’t Chase This Stock Market Higher<\/h2>\n<\/p>\n

As the All Ordinaries continues to rally I’m sure there are plenty of people with itchy trigger fingers wanting to join in the fun. All I can say is step back and look at the big picture.<\/p>\n

I may not have seen this stock market rally coming but I do have enough experience to know when a market has become an accident waiting to happen.<\/p>\n

This weekly chart shows you that the S&P\/ASX 200 is now nudging up against the 4950-5000 region where it has failed five times in the past three and a half years. It is also approaching this area with its Relative Strength Index (RSI) the most overbought it has been since mid-2007 just prior to the crash.<\/p>\n

ASX 200 Weekly Chart<\/h4>\n<\/p>\n
\"ASX<\/a>
Click here<\/a> to enlarge<\/div>\n

<\/p>\n

Source: Slipstream Trader<\/div>\n

<\/em><\/p>\n

Even if we’re heading higher in the long run, there is a strong technical case that this market should at the very least have a substantial correction from here. It’s still early days and the momentum is still firmly up but the music can stop very quickly at major resistance levels such as this.<\/p>\n

So if you’re panicking that you need to buy high yielding stocks now or be left for dead, don’t panic. Just be patient and you’ll get an opportunity to buy stocks<\/a> at a cheaper level than here. Just remember that we’re heading into earnings season and a dose of reality may stop this stock market rally in its tracks.<\/p>\n

In fact, I sat down with Kris Sayce the other day to chat about the current state of the stock market and what the charts were showing me in a strategy session which is reserved for paying subscribers.<\/p>\n

(Ed note<\/strong>: you can get access to Murray’s latest Strategy Session plus gain access to the Strategy Sessions archives by taking out an obligation-free subscription to our best value investment advisory, Nick Hubble’s Money for Life Letter<\/em>. Click here for details…<\/a>)<\/p>\n

\"\"<\/div>\n

<\/p>\n

Source: Port Phillip Publishing<\/div>\n

<\/em><\/p>\n

During our chat I showed Kris that one of Australia’s biggest stocks has hit a key inflection point. It’s key because eight of the past 10 times that this set-up has occurred, the stock has fallen. In one case by 25% in four months.<\/p>\n

That’s a big drop, and with the odds in favour of it happening again (my share trading<\/a> is based on the balance of probabilities) a lot of traders and investors will be caught out.<\/p>\n

As I like to say, they’ll be ‘long and wrong’ and they’ll pay for it with big losses.<\/p>\n

So if you’re feeling that you’ve missed the stock market rally, don’t panic; another investment opportunity<\/a> to buy at a better price isn’t far away.<\/p>\n

Murray Dawes<\/a>
\nEditor, Slipstream Trader<\/em><\/strong><\/p>\n

Join me on Google Plus<\/u><\/strong><\/a><\/p>\n

From the Port Phillip Publishing Library<\/em><\/strong><\/p>\n

Special Report: How to Hunt Down 2013′s Biggest Stock Market Winners<\/a> <\/p>\n

Daily Reckoning: Market Migrations: The Hunt for Capital Gains<\/a><\/p>\n

Money Morning: How to Pick Stocks at a Fair Price<\/a><\/p>\n

Pursuit of Happiness: It’s Time to Set Your Retirement Gameplan<\/a><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au In today’s Money Morning I’ll show you why late-comers to the recent stock market rally shouldn’t panic. As I’ll explain, the market is at a key point that will likely catch a lot of investors and traders off guard. Don’t Chase This Stock Market Higher As the All Ordinaries continues to rally I’m … <\/p>\n

Continue reading “Don\u2019t be Long and Wrong on this Stock Market Rally”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-35965","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/35965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=35965"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/35965\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=35965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=35965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=35965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}