Econintersect: The Chief Education Officer for Online Trading Academy, Sam Sieden, has gone on record as having a cautious view of the current stock market. Seiden, a Global Economic Intersection contributor through the series “Online Trading Academy Article of the Week“, said in a press release by his company last month:
“Most of the time, the best time to leave a party is before it’s over. Now is not the time to enter the market because prices are nearing retail levels.”
Seiden projected last month that the market might turn south when the S&P 500 index approached 1595. He indicated that would represent full retail value for the market and he prefers to enter the market “at wholesale prices”. He cites Dow Jones Industrials (DJIA) at 13,500 as a good wholesale level for the current market.
For reference the markets closed Friday 03 May 2013 with the DJIA at 14,973.96 and the S&P 500 at 1614. The S&P 500 rose above 1595 for the first time ever on April 29 and closed above 1595 on April 30. Stocks are now above Seiden’s estimate of full retail value.
Following is the full press release from Online Trading Academy:
Online Trading Academy’s Education Chief Says That at Current Stock Market Prices, It’s Not a Good Time to Enter the Party
Sam Seiden, Chief Education Officer for Online Trading Academy, Discusses Market Timing During the Stock Market Rally
Irvine, CA, April 14, 2013 – Online Trading Academy’s Chief Education Officer, Sam Seiden, is taking the financial markets by the horns with his proven market timing strategy. Not since 2007 has the Down Jones Industrial Average been at a rally of over 14,000 but Seiden is not jumping on the band wagon of buying stocks. Instead he is selling to make a profit, much like other professional traders and investors.
A recent article in The Wall Street Journal is calling these traders and investors, who are selling instead of buying, the “party poopers” of the rally. Seiden says otherwise, “Most of the time, the best time to leave a party is before it’s over. Now is not the time to enter the market because prices are nearing retail levels.”
According to Seiden, “A good rule of thumb is to enter the markets at wholesale prices, Dow 13,500 for example. This is a comfortable entry point for longer-term capital. When the Dow Jones Industrial Average is high this often means that companies are making big profits because they’ve cut costs, including labor by having machines do more of the work and or perhaps made better deals with labor unions. A rallying Dow doesn’t necessarily mean that the economy is thriving, it typically means companies are.”
Seiden continued “Investors shouldn’t only look at the Dow Jones Industrial Average but also the S&P (Standard and Poor’s) Index. When the (June) S&P Future is between 1580 and 1595, the markets are likely to stop rallying and turn lower as that area represents retail price levels. Professional traders and investors care more about the S&P Index than the Dow because it represents 500 stocks versus 30. Online Trading Academy teaches students to apply its core strategy of timing market turns and moves to the S&P in its live trading rooms, as part of its Extended Learning Track curriculum.”
For more information about Online Trading Academy and to register for a free workshop, please visit www.tradingacademy.com.
About Online Trading Academy
Online Trading Academy helps their students by revealing the truth about what it takes to become a successful trader or investor. Their core strategy enables traders and investors to identify market turning points before they happen, with a high degree of accuracy. Students learn under the guidance of experienced professionals in a hands-on, learn-by-doing classroom setting. In the Professional Trader course, students learn trading skills and then practice trading live, in the classroom, with Online Trading Academy’s money, without paying commissions or risking their own capital.
With over 35,000 graduates, Online Trading Academy offers professional instruction from experienced industry professionals, as well as a wide array of beneficial home study materials to supplement classroom study. Online Trading Academy locations include Atlanta, Austin, Baltimore, Boston, Charlotte, Chicago, Dallas, Denver, Detroit, Ft. Lauderdale, Houston, Irvine, Kansas City, Los Angeles, Milwaukee, Minneapolis, New York, Philadelphia, Phoenix, San Jose, Seattle, Secaucus, Stamford, Tampa and Washington D.C., plus international locations in Dubai, Jakarta, London, Mumbai, Singapore, Toronto and Vancouver. For more information, visit www.tradingacademy.com.
