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Riding the Beast

August 21, 2009 – 5:17 pm

The market is a strange beast. Last Friday the market fell and on Monday it continued the weakness falling sharply, a follow-on pullback that appeared to be the start of a normal event that happens often in Bull markets, a 7 to 10% pullback. After Monday the market began to march up again and retraced the entire two day loss. As of this morning it surpassed its recent highs.

There was no great news about the economy.┬áIt continued to be mixed showing a slow improvement, so why the rebound? I am sure the pundits will give us ‘an’ answer but it is a simple phenomenon – The market tends to fool as many people as possible. The fact is that we are in a bull phase for the market.

Chances are very high that a pullback will happen. In fact it would be very healthy. As the market continues to rally without a pullback the higher the risk of a deeper fall. Still, you have to ride the ride of this bull run. Just be ready to dismount those stocks that are at highest risk.

Ride the beast as long as possible; we have a lot of ground to make up.

Good Trading

Steve Peasley

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