Market Review: January Tops

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Market Review: January Tops

Nine of the past ten years, the market has seen an “end to a technical rally” in January.  Our current rally started in September of 2010.  Last January, the market topped on January 19, and we had a 9.5% correction into early February.  Using technical studies to confirm fundamental trends, it appears that a correction is now due.  How much of a correction is yet to be determined, but if you feel like you want to add risk in your portfolio/401k account, I believe you will get a better opportunity to buy “a dip” over the next few weeks.  If you feel that you have too much risk or if you are worried about 2011, now would be a the time to “take some profits” and reduce risk.  Technical analysis helps us to better understand the overall strength of fundamental trends.  No system is 100% accurate; however, with discipline, better investment decisions can be made.  So, be on alert for what may be a very good buying opportunity for those that want to take more risk in the next few weeks.  If we do get a nice, healthy correction, I will blog on when it appears to be concluded.

Grady Gaynor
Grady Gaynor
Grady Gaynor is the President & CEO of Indie Asset Partners, and has over 25 years in the investment industry. His approach to portfolio management is guided by a set of criteria developed over his tenure to help his clients manage both bull and bear markets. Make sure to subscribe to Indie Asset's enewsletter to keep up to date on Grady’s latest posts.

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