Perfect Guidance
When you have a little time,
please take a moment and read my reports dating back
to August 26. That was right at the time the market topped off the rally
starting July 24. I am just amazed how the
charts are guiding us almost perfectly
through this maze.
As of this second, I do not have much to add. I did want
to address the many calls on
Tuesday’s action as a double bottom and some calling it “the bottom.”
Here are my thoughts.
- There was no volume on the 342 point rally.
- There was no panic selloff.
- RETAILERS are acting like Robert Toricelli’s political
career. Take a look at the RTH. - Volume on Wednesday’s drop in the NASDAQ was larger
than Tuesday’s rally.
If it was the bottom, CMA would not have dropped $10.
If it was the bottom, CBM would not have dropped $12.
If it was the bottom, POS would not have dropped $10.
If it was the bottom, ATN would not have dropped $5.
When the bottom comes, bad news will not trash stocks. Bad
news will be good news.
There are only two ways a bottom will be put in here.
Either the market stops going
down and starts bouncing along the lows for many weeks, or we have a
panic selloff where everyone who wants to get
out…sells at any price. I still
believe odds favor the latter.
“Cash” and “sell” are not four letter
words. Of course, if anything changes, I
will let you know.
I am appearing on FOX NEWS CHANNEL Friday at 4:00 p.m. EST
on Neil Cavuto’s “Your World.” I
will also be on FOX NEWS CHANNEL’s “Bulls and
Bears” at 10:00 a.m. EST on
Saturday. I am looking buff, so tune in.