Making Money Alert – FREE
11/25/2009
This time of year, we normally can count on the market being in full-rally mode. There is a term that I use in my book "Maverick Investing" to describe this time of year. I call it the growth season, and it’s from Nov. 1 through April 30. Historically, this is the time when the market grows three times faster than it does from May 1 through Oct. 31.
As we’ve been pointing out for weeks now, the current rally does not have widespread participation from the small-cap segment, nor has it included a rally in financial stocks. If we look at the chart below of the S&P 500 Index, we see that while this broad-market measure of stocks is trading near new highs, we haven’t yet seen a really strong breakout from the psychologically and technically significant 1,100 mark.
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