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Anticipating a Rally

Posted on March 3, 2009 by Adam

As the market continues to grow further and further oversold, the probabilities of a rally, and sharp one at that, continue to increase. It makes sense to skew your positions towards low risk bullish setups with a lot of upside potential. That doesn’t mean you should be covering all your short positions, but I would consider taking profits on some of them here.

To be honest, I’m surprised we haven’t rallied harder already. I know that it will come eventually, and it will be painful for the shorts. Don’t be one of those people