January 5th Daily Market Comments

How much longer can this market continued to go up? That is what usually is asked by most investors. So what do they usually do? They close out positions/take profits because they think the market has moved up to levels where they are anticipating there could be a possible reversal. What is wrong with that strategy? Because many ‘smart’ investors and ‘intelligent’ money managers closed out positions because of that line of thinking three months ago, six months ago, nine months ago, because they thought the market was too high. Let the market tell you what the market is doing. If you are apprehensive about how much more some of your stock positions could move, there is one logical process. Place stops at levels that would indicate there has been a change of investor sentiment. As of now, there is no change.