Sunday, December 22, 2013

Daily State Of The Markets: 2014 Planning: 2 Sell Signals To Watch For - Seeking Alpha

Daily State Of The Markets: 2014 Planning: 2 Sell Signals To Watch For - Seeking Alpha

Here is an outstanding article for knowing when to sell your stocks at a market top.  One technique that the author mentioned is to get out of the market when the S&P 500 closes below the 13-month exponential moving average.  This would have saved you from massive losses after market tops in 2000 and 2007.  Then, if the S&P 500 is above the 13-month line, just stay in stocks.  You could have made 25% in the S&P 500 this year and 33% in the Nasdaq.  We should never sell during slight pullbacks because commissions will kill you and getting back in at a higher price will hurt.

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