Thursday, August 24, 2017

Nobody ever calls to tell you when to sell: When a market tops:

In a market where there are buyers and sellers, it is pretty amazing that no investment firm every calls investors and tells them to sell...Maybe an investment firm might be so bold as to change their "allocation" from very aggressive buy to neutral. That would be a disguise for an outright sell recommendation. But they would not want to offend any of their institutional clients....after all, they are in bed with all concerned. Thus...it is up to the individual investor to use some technical tools to decide for onself when there is a market high or when the market is turning...and avoid losses.. Some years ago, in 2007, my youngest daughter was in high school. I had a project for her each week, for pay, to graph and post the advance/decline line, the High/Low line and the the S and P. Every Saturday, when Barrons arrived at the door, I gave it to her and she did the posting. I think I paid her $5 a week. My only instructions were to tell me when the charts were all turning over and falling. When she first approached me with the news that the charts had turned down, I was a disbeliever..."Lets just wait a week" I said.. Anyway, the next week, when the trend continued, we exited all equity positons....and you all know the rest of the story. We avoided the plunge in the stock market. In reviewing my investment in the technical posting....those three indicators were worth their weight in gold. And today, in 2017...it is deja vu all over again...Stay tuned..