In a few days we will be officially entering into the silly season. Most people think of this time of year as the holiday season, but for many investors it tends to be the silly season.
If you haven't made your money in the market already this year do not try to make in the last two weeks of December. This is when the markets are at their most volatile (hard to believe after what we have been through lately) and are trading at their thinnest volumes for the year.
We had a signal on Monday to cover our short DOW position. This turned out to be a nice trade as we had been short the DOW for quite some time. This exit the DOW position came exactly at the right time of the year as we choose to sit out the rest of the year.
Don't misunderstand, covering a short position on the DOW does not change our view of the overall trend for the market. What it is saying is that the market has reached a neutrality between buyers and sellers and has stopped going down.
We would not be surprised to see the market's downtrend resume in 2009, as it appears that there are still a great many challenges ahead for the country and the economy.
If you have the time, please watch this short video I produced to show you the exact signals which told our members when to enter and exit the DOW.
It will give you a better understanding of how the markets work and how you can use our "Trade Triangle" technology in the New Year to make profits.
Enjoy the video,
Adam Hewison
President, INO.com
Co-creator, MarketClub
