Watch Out!

The market has rallied to a very critical point. This point is the confluence of a number of moving averages. Normally the market hold ABOVE the moving averages, but since last year the DJIA has been BELOW important moving averages. Earlier this year, the market was more than 30% below its long term moving average. Since March, it has rallied right back to its long term moving average near 10,500. This is make it or break it time, folks. The low-risk shorting opportunity is here! Now maybe it doesn't work out and the market breaks through to the upside. We will know in a few days whether that is true. But even if occurs, what is the risk? 150-200 Dow points? What is the potential gain? Close to 4,000 points, using the March low as a guide. That is a 200:1 risk/reward profile. Who doesn't want to take advantage of that? There is no guarantee that it will work, but the risk that it doesn't is so small and the potential profit so large, that it is the prudent, yes the prudent action.