Daaaa Bears.
Again.
Three straight weeks, and all of a sudden the bulls have gone from first to worst. Of course there’s only 3 camps out there (bears, bulls, and sideliners), but still, the pain level is increasing and bulls simply keep responding by raising more cash. Unloading shares. Joining the sideliners.
This remains a time to avoid the long side while the carnage continues, which means if you aren’t short selling [1] stocks that cash is the next best alternative. You’ll have plenty of chances to buy once a real low is made, but so far this market is still searching for it. Of course there will be some lucky schmoes who happen to buy the lows (once they are seen), but rest assured it won’t be on their first attempt. And the charts aren’t showing us any reasons to think that time is here yet, so patience is a must at this point.
Perhaps the bulls will get some help this week from Bernanke & Crew, but even if they do, the key will be how a bounce is treated. If a bounce is produced, it’ll be difficult to trust for anything other than a quick pop, as all the others lately have been used for selling into. Either way, it should certainly be interesting! Be sure to check out this week’s Market View [2] page over at TheStockBandit.com before you start your trading week for a closer look at the indexes and some chart comments.
If you’re a bull, remember that this too shall pass. But right now, the bears are growling and they deserve some r-e-s-p-e-c-t!
Trade well this week and stay patient out there!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com [3]
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]