You Best Be Careful Chasing

March 6th, 2009 | Filed under: Financial Markets

Yesterday enforced why I don’t like investing into the market the day after a rally. You really never know if it is real or a fake bounce.

By now you should already be in the mind frame that stocks will continue to move south, so look for opportunities after they come back down. Trust me, with the beating the stocks have taken, there is too much room for you to miss profits.

If we look at the brief technicals for the week of the Dow, then you can see that it just created a double top. Only to eventually plummet even further. I am sure there are many people out there, who lost money chasing gains, they felt they missed on Wednesday.

Dow Industrial Average Technical Analysis

In markets like these you need to keep disciplined and invest in stocks that with solid opportunities to grow in value. Do not think that the problems are suddenly going to evaporate like that.

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