Only Time Will Tell
Bear market rallies are often preceded by pivots that
have the earmarks of major lows. But history shows us that, more often than not,
the rallies fizzle.
In a sense, you’ll see a reverse of the psychology we saw in late 1999 and early
2000. Remember the numerous times the market had a one- or two-day
plummet and many analysts would proclaim the death of a bull market. Each time,
fewer and fewer traders believe that the bull market would even come to an end.
I’m not saying that’s the case off the huge surge we had Tuesday. All I’m
saying is that you have you to stay focused and not be influenced by the
opinions of people who don’t any more than you do.
One thing I’d keep fixating on are the Nasdaq bellwethers, Intel
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Cisco
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PowerRating). I’m not
ashamed to say that this is probably the zillionth time you’ve heard me say
this. But hey, it’s important.
INTC broke below its two-month support, while it popped back
above it Tuesday, the breakdown seems to have stuck. What’s more, the volume is
dominant on the down moves, suggesting that the bears have the upper hand.
As we watch the Naz Show, keep in mind that the big caps direct
the action.
Until Friday,