When to Get in and When to Get out

This is in reference to MAJOR inflection points in the market:

Buy when price is not at a high, and when there is record buy volume on a nominal basis on the DJIA monthly chart. This may happen after some sort of capitulation or near the end of a bear market.

Sell when price is high, there is price expansion, and there is record sell volume on a nominal basis on the DJIA monthly chart.

Examples of this include the bull run of 1982, the warning before the 87 crash, the up volume in 96 (this time it was at a high but after a long consolidation), the up volume of 98, the record price expansion and volatility + volume of the 2000’s (large ranges and price swings at a high usually is bearish and it was in this case), record buy volume of 02, sell volume of 08, buy volume of 09.

These mark most of the largest inflection points in the markets last 30 years. It is interesting to note that volumes have dropped off to early 2000 levels in the past 3 years. When will volatility come back?

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