Falteringfreedom.com
Blog about the the economic disaster, its history, and how to prepare for the future.

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Saturday, April 25, 2009

Market continues to move higher... but I remain true to my position

The recent market run-up should be or near a short term top. If this was two years ago, I would've sold out of my position because of margin calls. However, I'm a much smarter investor than before and learned not to put more chips down that I had to borrow. The banks also use this "margin" game to lower the price of precious metals and forcing people to sell. After all... margin and excessive greed is how the banks collapsed right?

However, I have covered my BGU position and bought FAZ, since I believe the financials are very bloated right now. I also noticed something very interesting on Friday. The market rallied without JPM (JP Morgan Chase) and GS (Goldman Sachs) joining in. These two financials are the market leaders right now. For them to show a little bit of weakness when the market is rallying may be telling us something...

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