Rule 1: Ideal Selling Opportunity

The item is over-valued.
Its relative price is declining. 
Seasonal patterns indicate its relative price is likely to continue declining.

Rule 2: Ideal Buying Opportunity

The item is under-valued.
Its relative price is increasing.
Seasonal patterns indicate its relative price is likely to continue increasing. 

These conditions are a checklist for you to use to estimate how much success you are likely to have buying or selling a particular item. You're probably already doing this kind of market evaluation in your head, but now you can have it clearly laid out for you each week.

If you turn bullish and are looking to buy an item, but its over-valued and its relative price is declining, it may be more profitable to invest your inventory dollars in other items. On the other hand, if you own inventory and feel the market is going to decline, it may pay to get rid of over-valued items first because they have the most risk and could cost you the most.

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