Don’t Get Trapped – Investment Risk Is Not Being Rewarded

Once again, a few up days brought the stock market optimists out of hiding. But don’t believe their assertions that the 2+ month downtrend is over. The market simply bumped up from the 200-day moving average – a common “test” of the longer-term trend measure.

Therefore, this is likely an investor trap that causes worried investors to hang on and aggressive investors to buy more. If so, the stock market eventually will fall again and test new, lower levels.