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Monday, May 21, 2012

Don't trust the bounce!

Stocks are bouncing today, but this is a classic "dead cat" bounce - there is no fundamental or technical reason for it.  Small investors are simply buying because the market went down.  This is a stupid reason to risk money, and they will pay for their stupidity.  The 200-day moving average is at about 1,275.  That's where I will start buying.  Although we are up about 15 points on the S&P 500 right now, I do not think it will hold.  Be patient and be rewarded!

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