As written in my previous blog dated January 24, 2016, I was expecting significant increases in the SP500 and Dow Jones averages. My expectations have been met. The SP500 currently stands at 2088 a nice rise of 278 vs my expectation of 250 points. The Dow Jones currently sits at 17960, which is 2467 point rise vs my expectation of 3000 points. Both substantial rises off of the low in February as my previous post documents.
This market move has seem to run its course and I fully expect to have a slight pull back in all the major averages of approximately 5%. This should bring the SP500 to slightly below the 2000 range or approximately a 100 point decline. While this move will not be a major correction I would hesitate to add to any long positions at this time. Wait till the market has dipped below the 2000 mark before adding to your long positions.
Before the market embarks on this down ward move, you would not be uncommon to see a last move up to a new high in the markets. This move will be short lived and will not be a sustainable rally. Take precautions now and hedge your positions for this intermediate move down ward, your portfolio will thank you.
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