{"id":444658,"date":"2010-03-18T15:31:00","date_gmt":"2010-03-18T19:31:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:409675"},"modified":"2010-03-18T15:31:00","modified_gmt":"2010-03-18T19:31:00","slug":"ride-the-stock-rally-but-be-ready-to-jump","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/444658","title":{"rendered":"Ride the stock rally, but be ready to jump"},"content":{"rendered":"<p>If you believe that stock trading is all about riding short-term waves of sentiment, you have good reason to be fully invested. One of the <a href=\"http:\/\/www.marketwatch.com\/story\/using-the-200-day-moving-average-2010-03-17\" >simplest market-timing systems <\/a>calls for traders to be in stocks when the market is trading above its 200-day moving average and in cash when it\u2019s trading below. With today\u2019s market well above its average level of the past 200 days, investors should be bullish about the short-term outlook for stocks, says Mark Hulbert, founder of the Hulbert Financial Digest.<\/p>\n<p>But is this market getting a bit too frothy? Bespoke Investment Group points out that 89% of S&amp;P 500 stocks are trading above their 50-day moving averages. It seems that investors are turning so ebullient that they\u2019re driving up the price of every major company. <\/p>\n<p>Bespoke has compiled a list of the<a href=\"http:\/\/www.bespokeinvest.com\/thinkbig\/2010\/3\/18\/most-overbought-stocks-in-the-sp-500.html\" > most overbought stocks<\/a> in the S&amp;P 500 and it includes AIG, Office Depot, Citigroup and Whole Foods\u2014all stocks that got hammered in last year\u2019s downturn and for good reasons. The surge of this diverse and motley crew seems to reflect, among other factors, a growing belief that near zero interest rates must mean good news ahead for stocks. <\/p>\n<p>If only it were so. As David Rosenberg of Gluskin Sheff points out, low interest rates don\u2019t always translate into gains for shareholders. \u201cIf O% rates were a cure-all then Japan\u2019s Nikkei index would not still be 70% lower than it was in 1989.\u201d For now, it seems that the best investment policy for aggressive traders is to ride the upswing &#8212; but to be ready to get off at a second\u2019s notice.<\/p>\n<p><i>Freelance business journalist Ian McGugan blogs for the Financial Post. <\/i><br \/>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=409675\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you believe that stock trading is all about riding short-term waves of sentiment, you have good reason to be fully invested. One of the simplest market-timing systems calls for traders to be in stocks when the market is trading above its 200-day moving average and in cash when it\u2019s trading below. With today\u2019s market [&hellip;]<\/p>\n","protected":false},"author":4062,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-444658","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/444658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4062"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=444658"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/444658\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=444658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=444658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=444658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}