Tuesday, September 20, 2011

Buy the break or sell the Rally?

Are we in markets that we should be buying the breaks or should we be selling the rallies?  How much upside potential is out there if a perfect storm develops with all of the variables that are out there?  What about downside risk; is it still possible to see a 2008 like breakdown?  

I don't know for sure; nor does anyone; so if one is looking to marketing grain and have a plan the best choice is still probably risk management and in volatile markets that means risk diversification thus perhaps making sales in smaller increments then normal.

Here are a couple charts to help one decide if it is sell the rally time or buy the break time.









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