Friday, August 21, 2009

Pump, Dump, Then...

If you are an insider in this market, you've been loving this "pump" over the last 5ish months:

DJIA 6 Month Chart via BigCharts

It has allowed you to dump, at great profit in many cases:

Insider Sales Aug 20 -1

h/t Zerohedge

We are on the cusp folks. How much longer? Days? Weeks (my opinion)? Months?

Have an emergency plan in place. Be able to get by if the ATMs don't work for awhile. Most importantly, be prepared mentally for a huge shock to the system. I don't know what "excuse" the the masses will use to blame for the coming downturn - derivatives bomb? Middle East War? Pandemic Hybrid Flu?

Who knows. Just know that mood drives news. That clarity alone should keep you two steps ahead of everyone else.

1 comment:

Mike said...

Very good point on insider selling. I think this rally has continued though because so many people doubt it. That's why going forward I think a better investment than shorting the markets is in gold related assets, because the Fed is committed to fighting deflation with its easy money policies. Here is a site with a further discussion on why this should be beneficial for the gold price and gold mining companies, due to the inflationary effects of govt money printing.