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  1. #1
    Rookie Member

    Real Rally Or Fake Rally !!!

    Is this a real rally or a fake rally? This is an important question when you are thinking about buying or selling stock. The question can be answered very simply. All you need to do is focus on the S&P 500 high at 1,850.84. So far the markets have not taken out the January 15th, 2014 high (on an end of day closing basis). As long as this is not taken out then I would remain extremely cautious on this market. It may just be a reflex buy the dip bounce as the small investors jump in while the large institutions sell into them. We should know within days.

    Gareth Soloway

  2. #2
    Senior Member Deanfx's Avatar
    Not sure. It is really difficult question to answer. I will like to see few more days of trading before deciding is this market ready to move higher or to start going down. But your last word is very true. The institutions are really always one step ahead and selling to the unprepared crowd.

  3. #3
    Administrator Martin Kay's Avatar
    Moved to Global News Desk Room. If you want to discuss news, the best place to do it is here (:

  4. #4
    Specialist Member RCox's Avatar
    Interesting question, as any evidence that a rally is fake gives great opportunties to buy low or sell high in a contrarian position. I prefer to sell near the highs at this stage, but I think markets should remain relatively supported.

  5. #5
    Senior Member LeeChang's Avatar
    Strong overbought conditions in all the stocks markets around the globe. I agree with Richard – better to sell rallies near the tops at this stage of the market.

  6. #6
    Specialist Member marvel's Avatar
    For me it is a fake rally. There are significant signs that this rally won’t last for long time and will end in a real disaster for the markets. The big problem is that everyone is aware of that and FED will try to make everything possible to avoid such kind of development. That’s why we can’t be sure what will happen next but there is no way this rally to last forever. It is already 3 years old and I barely believe it will continue much more.

  7. #7
    Veteran Member hchandra's Avatar
    real or fake, as long as Higher high and Higher Low created then its an uptrend,
    but buying at current level might not be wise as risk and reward might not be appealing and its Supply level there.

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