When to Sell

Simple - watch IBD - and, when they yell Market in Confirmed Rally, get your stops in order. They're making a big deal out of the bounce coming in lighter volume than the previous day. They define a follow-through day as a 2+% advance in volume higher than the previous day. Problem is - the big players have realized that that's what people are looking for - so the game has changed - that's when they get ready to sell. At uncertain times like this, you have to view the market as a big poker game. Or musical chairs. Stay ahead of the pack and don't try to squeeze the last nickel out of the rally. One thing you can be sure of - we haven't seen the bottom - and there will be another huge downturn in a few weeks. Why? Simple - there were smart people who waited for the crash and got in at the bottom. After that, it's psychology - do you think they will hold on forever and take risk or be satisfied with a decent gain? Also, people who got burned will wait until there is a true bull-market.