Fall Rally Stocks

The fall rally in stocks has started early this year since Ben Bernanke has implied QE3 is coming and Mario Draghi, the ECB president, has made good so far on his promise to save the euro.  Since volatility is almost nothing, XIV has risen dramatically since it is the inverse VIX exchange traded fund.  It is a good time to buy  XIV because the fall rally will probably continue for a few more months at least.

Another good stock to own is Google (GOOG).  The stock has increased more than 40% in the past year, and Google just keeps coming up with more ways to make money.  It will probably be safe to own Google as long as the fall rally continues.  Supposedly, the stock market is due for a fall in 2013.  You could monitor Google to decipher when you should exit stocks.  Just go to Yahoo Finance and look at the chart of Google.  Then, add the 9 day and 50 day simple moving average technical lines to the chart.  When the 9 day moving average line falls below the 50 day line, you should sell Google and play defensively in cash or TLT, the 20 year bond ETF.  TLT will go up when stocks go down.