The Pre-RallySale Begins

Are you keeping an eye on those prices I wrote about? Sun is back in buying territory and the others are getting close. The wheels are falling off the rally bandwagon and it looks like we’re in for a couple of weeks of downward spiral.

If you’ve been reading this page regularly, you knew it was coming. I suggested buying Sun last fall at around $2.50, suggested selling last June at prices over $5, and have been preparing you for another buy at prices below $4. When the press is wringing its hands about the grim future, I’m buying. When times just can’t get any better, I’m selling, or I’ve already sold and am waiting for prices to fall even farther so I can buy again.

The summer was very good and we were long overdue for this correction. Things have been good since the Iraq War started in March. It was called a war rally for a few months. Once the war turned out to not be as good as everybody initially thought, the rally continued and has now become an improving economy rally.

Well, come to find out, the old economy isn’t as good as everybody initially thought, either. The nagging fact that a recovering economy that’s losing jobs appears to be missing the major advantage of recovering has finally sunk in. Then OPEC drove the price of oil up. Then Kodak slashed its dividend. Now, suddenly, hands are being wrung again.

Great news for clear thinkers like you and me. This sullen mood should provide us with plenty of buying opportunities between now and mid-October. Best start scooping up shares of Sun, get that double Dow program going from the bottom of this trough, and keep your eye closely on the price targets I showed in my last post. Once this fog clears, we look well-positioned for a nice end-of-year rally.

And, by the way, clap yourself on the back for NOT buying at the nosebleed prices recommended by all the geniuses at the major investment newspapers and websites. Watching them change stripes from bear to bull and back to bear can make you dizzy.

Here’s a good rundown of the market.

This entry was posted in Uncategorized. Bookmark the permalink. Both comments and trackbacks are currently closed.
  • Here are your three options:

    Option 1: Annual Subscription (no refunds)

    For just $200 per year, you’ll receive everything listed above to completely upgrade the way you manage your investments. This is 17% cheaper than the monthly option. This is what I recommend:

    Option 2:Monthly Subscription (no refunds)

    If you'd like to try The Kelly Letter  without paying the full year, you can pay $20 per month.

    Option 3:Free Email List

    If you'd like to hear more from me but aren't ready to part with any money yet, you're welcome to join my free email list:

    Join the free list

    Thank you for the work you do. You're a household name here and my wife and I often discuss your letters on Sundays. My ten- and seven-year-old children recognize your name and will eventually be taught to invest using 3Sig and 6Sig. You've had an enormously positive impact on our investing and inspired me to look at the world in more rational and clear terms than I did years ago. I'm sure that thousands of others would say the same. Kelly Letter subscriber Matt Barnes
    Matt Barnes
    Product Line Director

    Join Matt and thousands of other rational investors to invest without stress.

    Subscribe to The Kelly Letter  now!

Bestselling Financial Author