Market Review: January Tops

Market Review: Relative vs Absolute
January 11, 2011
Market Review: 1Q Review/2Q Preview
April 1, 2011
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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.