That we have a way to go before this market bottoms. The following moving average chart can be obtained from stockcharts.com. There are several other charts showing how many stocks the nasdaq, amex, spx, etc. are moving above the 50 and 200 day moving average. The moral of the story is that 36% of the NYSE stocks are moving above their 50 day moving average and there wont be a real bottom until it gets below 25-20% area. Then there will be a bounce of some kind whether it be real or of the dead cat variety. The time frame for it to get there depends on Mr. Market. I dont see any reason right now to go out buying stocks, but every reason in the world to short them.
I see the market bottoming when the dow hits 13600. It came within 25 points of it this morning. LBO activity will remain strong and housing will find a bottom eventually, not that its a big deal. Subprime situation is stable and oil prices are in safe teritory. Overally, I can find no compelling reasons for a substancial selloff given the current ciscumstances. In conclusion, now is the time to buy.
But that method has worked for the past five years when the nasdaq bottomed on Oct. 2002. However, I'm recommending to buy right now. The downside is 60 points on dow, but the upside is a fresh 52 week high in anout a month. the market has sold off for the past two weeks and formed three large red candles. Typically the bottom is made on the 3rd candle.
No offense, Stock Trader. But I would no sooner listen to you than I would any of the perma bears on this site.
Stock trader and Micheal Scott are actually the same person the old Dr Jeckel and Mr Hide complex with the end result they actually do NOTHING as they cancel each other out!!
I was bullish all the way till TODAY. I have a bad feeling about this one. I dont like to short, but today I sold all my long positions and went short on BSC and FTO. My advice to everyone is that this is the time to be all cash. Wait for a few days and see what happens before you start trading again.
If you don't like the thread why not do yourself a favor and leave instead of posting? You're just a sore loser with a stick up your ass.