It appears that we have hit a bottom some time ago.
But that does not stop people from trying to call the exact top of this market.
For the last few months I have seen numerous people state things like, this is the largest bears market rally in history.
Well I'll believe it when I see it.
By stating that we have to pull back you are actually going against the bigger picture.
Regardless of what you believe if a stock is going up, it is going up.
That is all there is too it.
There is no, it is going up now but next week it will come crashing down.
You can't say things like that because no one knows for sure.
So how can you make money? Not by calling the top, but by riding the trend.
If something is going up it is going up for a reason.
You can either analysis why it goes up, try and pick the top, or ride it all the way up and have a richer, happier life.
Personally the last option sounds pretty good to me.
Now that doesn't mean that if you get into a stock and it stops going up that you are up the creek without a paddle.
Using stops to get you out of a bad situation can be very helpful if it does turn around.
Stops orders are what separate the ones who make money and the dreamers.
It is nice to be prepared for every situation.
But in general, going with the trend seems to pan out pretty well.