But one big down day rarely kills a rally, and the market's recent trading shows the risk of acting too fearfully too quickly. Runs can be scored in the late innings of a ballgame, and leaving a market rally too soon can make for frustrating underperformance in relation to the indices.
Although my top-down system looks obviously less bullish than it did weeks and months ago, I'm still 100% invested as of this very moment. What my insider buy/sell ratio is indicating, however, is that the indices are due for at least a short-term breather.
That's useful to keep in mind as I monitor the individual charts of my stocks over the coming weeks, trying to decide whether to use any technical deterioration as an excuse to take profit and raise cash.
P.S. Will you be there when Cramer makes his next move?
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Market Analysis The Most Bullish Time of the Year? 11/21/2006 7:38 AM EST Not so fast. The odds are favoring consolidation into year-end.
Jonathan Moreland is director of research and publisher of the weekly publication InsiderInsights, founder of the Web site InsiderInsights.com and the director of research at Insider Asset Management LLC. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. While he cannot provide investment advice or recommendations, Moreland appreciates your feedback; click here to send him an email.
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