To determine whether a market top has been reached, one
would have to correctly aggregate the beliefs of all major players in the
financial markets and process them through time - this is impossible to do. To
complicate things, data points are sending mixed signals and asset prices are
hovering near 5 year highs.
This morning, jobless claims
decreased by 2,000 in the United States.
Yesterday, the IMF said that the global economy should strengthen in
2014, but growth is also "too low, too fragile and too uneven."
Should you sell your long
positions? What about sitting back and observing? What is everyone else
doing? As time elapses, these are the questions you will
never have a perfect answer to.
Whatever your investment
strategy, do not be afraid to watch – sometimes sitting on the sidelines allows
you to identify the most ripe opportunities. Here is a Seasonal trade for January 16th. Stay smart and trade safe.
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