Market Slapping Me Out of My Bearish Stupor

I have been so bearish that I didn’t want to post on the blog, pick stocks, or even get out of bed in the morning.  However, I’ve finally seen some signs that have shaken me out of my bearish stupor. 

The Henry Paulson news this morning, Bernake’s indication last night that he’s cutting rates again, and the equity investments in troubled banks over the past weeks, are the first indications that regulators and investors are getting ahead of the credit problems, not just trying to put out fires that have already sprung up. 

In addition, the technicals are turning up from very oversold levels.  The NYSE and NASDAQ bullish percent indicators have turned higher from levels that have typically marked bottoms in the market. 

Nyse_bullish_pecent_113007

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And the "dumb money" is bearish, while the "smart money" is bullish according to Sentimentrader.com. 

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All of it says to me that this is a market in which to buy the dips, not sell the rallies.   I’m not predicting a return to the old highs this year, but I’m guessing the market can chop higher for the next month.

3 thoughts on “Market Slapping Me Out of My Bearish Stupor”

  1. actually, am selling strength and maintaining or adding to short-side long positions like SDS

    long on commodities like sugar, corn, wheat, soybean oil

    less long on gold and taking profits

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