Posted on August 24, 2009 by Adam Pichette

After a strong selloff to start last week, the stock market staged a 4 day rally that pushed all market indices to 2009 highs. This rally has extended over the weekend into Monday morning, with the market up in morning trading. Usually when the market rallys for 5 straight days of gains it is safe to bet that a selloff or a retracement of some sort is right around the corner. Today’s positive movement makes for an excellent opportunity to cash in on some profits, as there have been many large gainers over the past week. Not doing so is taking a risk, espescialy if you are a trader, being an investor gives you some more leeway, as you are generally seeking larger long-term returns. As a trader though, 5 days of positive movement is almost a gift, one that should absolutely be taken before it is gone. Wait for a down day and re-stock on your positions with your newfound capital, it’s the smart and safe thing to do.