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Beating up on the Smart Money

March 7, 2012 – 6:16 pm

As we finally see some weakness in the market it is going to be the individuals’ response to this weakness that is going to be important. The professionals have been the driving force behind the market, pushing it up for the last two months. Now they will take some profits. They then will move back in to the market for another run towards last year’s highs, but until the retail customer gets involved and pushes up prices to new highs will we see a top to this market.

This scenario has played out untold times and it is very likely the same story we are living today. It does not have to be true but it tends to.

Hopefully, the individual investors recognizes the push and pull of the so called smart money and can make the proper moves to anticipate and actually beat the professionals at their own game. It’s this knowing of how it is played that will benefit the smaller investor the most and could easily upset the long established pattern.

This correction, no matter how large or long is one to buy not sell. A bigger correction may come later in the year and to get some perspective look at what happened last summer. That was a 19% correction and that pattern may well play out again as summer gets closer.

Good Trading
Steve Peasley

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