What Would It Take To Call This Rally Officially Dead? This Level…

  • May 10, 2005
  • Tim Truebenbach

The
market’s action on Tuesday could possibly have thrown a major wrench
in the confirmed rally we were in.  All of the major indexes came under
distribution, or professional selling.

 

 

Individual stocks have not
been making much of a showing and other than being long some ETFs, most
investors that follow this column probably don’t stand to take significant
hits.  The rally would not officially be dead unless it undercut recent lows. 
On the NASDAQ, this equates to below 1,900.

This market has had very
rough going in 2005, and we don’t seem to be seeing any changes in that.  For
this reason, consider treading very carefully and allocating capital in no
more than 25-50% chunks.

Tim Truebenbach


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