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Is this causing unease and jitters at the top? Not really the market is just running out of puff:
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Many analysts will say that the Russian standoff is unsettling markets but the reaction has been muted – except in Russia where the capital outflow has been unprecedented.
There are many other factors that are effecting market direction now but as a technical analyst I am happy to put aside the fundamentals as they complex the picture.
Simply the market is now treading water until new data emerges. A breather after a five year run up. It is sure healthy. Everyone waits.
The market is now range trading:
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And has been for nine months.
If you bought in these nine months your purchases could be under water. You could also have made significant gains. It is sector and stock specific.
But it is a good time to do some housekeeping – not when everyone else is heading for the ‘exits’. Avoid the stampede!
Selling can be tough but not as tough as giving stocks away. We have all done that.
Enjoy the ride
Tom Scollon
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