My Unofficial Market Barometer

I have long said that I don't try to forecast the near-term direction of the market. However, I do have an unofficial market barometer, and that barometer has been showing signs of activity lately. The needle has begun to move.

This barometer is my brother. The last time we had a market top, he was generally considered the stock picking expert in the family. His picks, the companies he followed, and how much he made last week were all subjects of conversation when we would get together for a family dinner every few weeks or so.

Well, his picks are coming back in vogue. It was tech in 1999, but this time it is smallcap stocks, and he is making a killing.

If history is a guide, I should start hearing stock picks from cab drivers and my barber within the next few weeks, and that, for you traders out there, will be a full-on sell signal.

For you investors (ie smart people), I recommend you keep your ear to the ground, but don't change your course. Continue to sock away your retirement savings, be sure you are staying within your targeted allocations, and you will continue to do fine. If the bottom falls out, by all means, don't panic. Just buy the stocks my barber is frantically selling.