Would You Buy Or Sell This Stock?

Would you buy or sell this stock based on the chart above?

It is an inverted chart of the S&P500 from the low in 2009.  As much as everyone wants to call a top in the stock market, if you look at it from another perspective based upon this chart, what gives you the impression that it is ready to reverse?

The emotional trader continues to feel like this rally can not continue, that stocks are poised for a sharp correction.... and they very well may be.  But shorting the market here remains similar to catching a falling knife on a stock that is collapsing.  More often than not the stock drops much further, farther, and faster than expected.  The knife catchers end up with one finger left to buy the dip when the stock finally reverses course.

We've seen it over the last, almost 6 years.  The top callers, the crash commentators, they'll be right at some point.  But it's been a lot more profitable riding the trend then fighting it.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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