Safe rather than sorry

Sure the market has been acting a little better of late with the price of oil on the decline and the strength in the dollar being big contributing factors.  However, please keep in mind that oil is still $113 per barrel which is very high and the dollar is still selling at a steep discount to most other world currencies.  Also keep in mind that inflation, as reported last week is running at the highest rate in 17 years and that while oil is dropping in price it’s because of weak demand signaling a world economic recession.  Volume has been very light on the upside which is very usual for August when many traders are away on vacation.  For my part, I would be selling any stock that has recovered from recent lows. Perhaps my opinion will change after Labor Day if some of the money on the sidelines comes into the market.  But for now I’d rather be safe than sorry.

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