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.
  • The Kelly Letter
    A Complete Investment Management System
    The Kelly Letter  every Sunday morning by email.
    Like no other. Many subscribers say this is the best read of their week, astonishing in its ability to distill seven days of noise into one succinct overview of the very few items that might matter. Start your Sundays right!
    A one-page Quick Start Guide
    with page number references to full information in The 3% Signal. You'll receive access to this right away so you can begin transforming your portfolio into a performance machine immediately.
    The 3Sig Calculator.
    A thing of beauty! You'll use it to generate your own personal signals every quarter including exact share amounts to buy and sell based on your account balances. It emails you the results to make later quarters easy by keeping last quarter's numbers at your fingertips. Some subscribers say this tool alone justifies their subscription price.
    The subscriber-only section of this website
    where likeminded investors are commenting on notes and discussing in forums. Jason joins these interactions every day. They're a treasure trove of investing tips and wisdom.
    The archive of Kelly Letter notes.
    It’s a research center, searchable and smartly tagged to make gathering time-stamped material on covered subjects easy.
    The subscriber podcast.
    Jason reads every letter word-for-word. This feature was requested by subscribers who prefer audio learning. They listen on their Monday morning commute, during a workout, or while reading along at their computer.

    Save 17%

    Pay as you go
    Or sign up to receive free email and learn more about the system.
Bestselling Financial Author