iBooyah.com: Proceed With Caution
This morning the government released the CPI number; the market likes what it sees. It sees an environment of tame inflation and steady and sustainable growth. This data will provide additional reason to keep interest rate at the current rate. This is welcome news to the stock market as uncertainty regarding future interest rates policy is becoming clear.
However, another day of triple digit gain in the DOW makes me nervous. The DOW is up above 200 points in three days. Even stocks that have no business going up are starting to move. The market rally this week should be view with caution. If you are up on your positions, consider letting some go as there will always be another opportunity to buy it back. While it might seem you might be missing out, days such as today should be used a selling opportunity.
In the next few days, I predict there will be a sell off as the fund managers and professional traders will be looking to lock in their profits. When that happens, use that as a buying opportunity. Good Luck!
