Posted on May 8, 2009 - by Brendan Lee

Where is the stock market going?

Photo by rednuht

With the current rally, many of my friends have asked me if they should buy some stocks. My advice to them is sell NOT to buy. I had used this rally as an opportunity to sell off my AIG shares at 15% profit.

Market has too high expectation on US policies, if the real economy does not improve as per expectation, stock market can face a sharp correction.

With current rally, many are tempted to buy. Please…. do not be anxious to buy again. To make big money in stock market, we have to buy when everybody is selling. Now everybody is buying, HOW to buy? If we buy now, we will end up buying at the peak.

According to my research, currency has always been a good leading indicator for stock market. Currently Euro vs Yen is coming down (see chart below), this is a sign that stock market has peak. And the next direction is down. Read more…

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2. Is This Stock Market Rally For Real?
3. Don’t Be Suckered By Stock Market Rally In 2010