What Every Bear Paves The Way For…
Today’s trading was
another day that very little could be derived from. Based on the evidence
that I have seen, the market is still locked in a downtrend as a war with Iraq
nears. We have seen days of distribution and accumulation, but nothing to
change the heavy distribution evidence that we saw in January.
The bear market seems to have
switched gears into one of wearing investors out. Previously, its declines
were ferocious and hurt portfolios that were invested on the long side. The
important thing to remember is that every bear market has paved the way for a
new Bull. This is one of the worst declines to hit since 1929, but it will
eventually work itself out as it always has.
In the meanwhile I am keeping
close tabs on the price and volume action of the indices as well as leading
secondary indicators. I would like to see the VIX trade above 40. I also like
the action I am seeing in Investor’s Intelligence. Bulls and Bears are almost
even and with further declines, Bulls may take over.
Stocks like Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) are poised
to break out and are worth watching in the event of a confirmed rally.
Stocks like
Cognizant
(
CTSH |
Quote |
Chart |
News |
PowerRating)
have attempted breakouts but are going to be met with a ton of resistance
until the market can solidify.
Now is the time to
NOT LOSE
MONEY because this market will evolve and the more money we have, the more we
will be able to make.
Sit Tight and Be Patient…
Have a great weekend,