Stuck in a Funk

We have seen the market rally tremendously from the March lows. All kinds of positive information from banks, housing, retail, and consumer confidence have brought the market back around favorably. However, we are seeing a pause now. Why? This is simply a sigh of relief from investors built upon anticipation for what is to come.

The market responded nicely toward positive numbers the past few months, yet, the market seems to have stopped moving. This is because we have not seen any updated numbers. The next part of the rally depends on second quarter earnings. CEO's have suggested the recession is over after this quarter. We will see whether they stick to this view when they give their outlooks with their conference calls.

Now is the time to start taking profits and being cautious. If we see positive numbers, the market will jump even further. If negative news comes out, the market will fall again. Cash money is only made taking profits. Share prices move fast. If you don't act soon enough, the money you seemingly made during the rally will be gone again. I am not saying that I'm expecting bad numbers. Actually, I am. However, I would urge you to be cautious and make good on what you have while you still can regardless of what happens. There is no V shape in recovery. It is a long, drawn out process. Take your cash money before it's too late.