Caution Should Prevail after Sharp Run-Up off late August Lows

Published:

22 Sep 2010 17:12 ET

Given that the market has rallied nearly straight up off the late August lows, a period of pulling back and consolidating would not be is not unexpected. Caution should be exercised here as the market is in an extended position and could easily pull back 3-5%. Gauge your risk preference on any such pullback by deciding what, if anything, you prefer to stay long, taking into account your cost basis for existing positions.

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