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[AKrider]

Found this article on seekingalpha Have Faith in Market Rally, But Beware a Pullback -- Seeking Alpha


"Have faith in the current rally, but beware a near-term pullback that will temporarily sidetrack the market's winning ways, says Scotia Capital Markets strategist Vincent Delisle.
Mr. Delisle said in a note to clients:

We believe in the legitimacy of the rally and continue to expect an improving macro outlook to support the cyclical revival. As enjoyable as this winning stretch has been, however, the laws of physics should eventually catch up with this positive momentum.

With markets on both sides of the border up near 40% since hitting their current lows on Mar. 9, Mr. Delisle said investors should be ready for both the S&P 500 and the TSX composite to turn back towards their 50- day moving averages of 809 and 8,846. respectively. Based on the current level of both benchmarks, a pullback of this magnitude would represent downside of approximately 23% for the S&P 500 and nearly 12% for the TSX.
While nothing to sneeze about, the strategist believes the downside risk is limited because it is unlikely that markets will retest their previous lows.
He wrote:

First, the trend in improving macro data should continue. Secondly, investors will likely succumb to the 'bull flu' and reallocate assets away from the comfort of cash and government bonds into equities and corporate bonds.

As a result, Mr. Delisle is confident markets will rebound from any pullback. Over the next 12 to 18 months, he maintained the S&P 500 will climb back to 1,000, while Canada's main exchange will return to 10,000."

[AndyB]

because it is unlikely that markets will retest their previous lows

Oh man, these guys obviously don't study history. There has rarely been a bear market where lows have not been retested.

Anyway I'll get my talk outta here, just to say don't listen too much to the talking heads, these guys are designed to move the crowd, which is you and me, in order to bid up (or down) stocks so that the insiders (that's them) can make maximum from us.

Ever noticed how news is the most bearish at the bottom "Stocks to fall further" and the most bullish at the top "Dow to reach 10,000"?

[AKrider]

Yah I have noticed that actually. Media in this country is horrible. I am not saying I think the bull rally still has strength, I just thought I would offer another side to the story rather than all the bear articles we have.

[AndyB]

It's the same in the UK mate. The system is designed to siphon cash from retail investors to the big players.

Hey quick point for you - insiders are selling, institutions are selling (I can find sources if you want). Who's buying? retail investors (That's the technical term for the general public). We're going to get steamrolled soon as CEO's of companies are selling their own stock to us

Best bet - turn off the news, don't listen to it, learn how to interpret the economic data and the charts yourself and then you can be your own financial adviser!!

[AKrider]

Thanks. Yah those links would be great.

[Stealpulse]

Average in and average out.

Set stops.

Do both based on the data you have available to you, taking into account the "suprises" that occur, such as share dilution, or a buy-out offer.

If you design to have 100x returns, that is also the strategy that can break your bank. Find a middle ground.

[AndyB]

Hi AkRider, some links for you

This is a video from mid April about insider selling:
SOLD TO YOU!!!!!!!!!! | THE PRAGMATIC CAPITALIST

Institutional buying/selling from a week ago:


Net commitment of traders (Nasdaq). Note the large spec bullishness has dropped very sharply in the last week. All that's left (bullish) is small-specs. Thats individuals like you and I.



Edit:

Also just saw this

The-Worst-Is-Yet-to-Come