How will the S&P perform for the balance of 2012? Looking at Charts (Technical Analysis) gives us a clue of what may very well happen, and this offers us a chance to protect our investment in the stock market. How do we protect our investment, you ask?... Buy only quality stocks on pull-backs (on sale), that pay dividends, and buy more of these same quality stocks at a cheaper price.
For those that have money in a work place savings / investment account like a 401K what you do is move your money from the investment portion of the account to the savings portion of the account to lock in your gains while the market drops, then put your money back into the investment again to increase profits as the market again rises. Note: (401K and similar accounts have rules to promote stability in the account. They don't like lots of trading, so read the rules of your account). Example: Every few months its allowed that you make six transactions ( move into investment three times, and move out of investment three times, on line) there after to slow you down, you'll need to use snail mail to do the same thing. After more time has passed, you can then use the internet again for moving in and out of investments within the 401K account.
Learn the rules of your account, and use them to your advantage.
For those that have money in a work place savings / investment account like a 401K what you do is move your money from the investment portion of the account to the savings portion of the account to lock in your gains while the market drops, then put your money back into the investment again to increase profits as the market again rises. Note: (401K and similar accounts have rules to promote stability in the account. They don't like lots of trading, so read the rules of your account). Example: Every few months its allowed that you make six transactions ( move into investment three times, and move out of investment three times, on line) there after to slow you down, you'll need to use snail mail to do the same thing. After more time has passed, you can then use the internet again for moving in and out of investments within the 401K account.
Learn the rules of your account, and use them to your advantage.
If technical analysis is correct and very often it is, we then will have an opportunity to buy more quality stocks at reduced prices when the market offers them on sale and makes its normal 10 percent or more correction.
S&P 500 at 1450 area is determinant level for the rest of 2012. A sequence that repeats itself is seen again with technical analysis of the S&P500.
In 2010 from May to October, the S&P maintained a level of around 1050 to 1110, then at about September the S&P began its climb upward at a steady rate till hitting resistance at about the 1344.07 level and maintained that level from late March till July when the S&P made a correction down to 1074.77 and maintained that level till October when the S&P again began its upward climb till it hit a new resistance at 1448.87.
This new level of support (at about 1450) could be reached by April of this year, and if history repeats itself, there will be a drop of the S&P500 to the support level of 979.45 by October of 2012.
By keeping an eye on the charts, (Slow Stochastic, Moving average, MACD and others), we can see how the institutions are investing. When they are buying, this causes prices to rise…or selling, causing prices to drop.
Profits in the stock market are created by buying stocks at ‘your price’… NOT the markets, and buying when the institutions are buying. Reduce losses and create profits by learning to use charts. Learning Technical Analysis is one tool well worth learning.
More information is at http://www.Twitter.com/StockMktTeacher
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