So we finally got an oversold bounce, and what a bounce it was! There's no telling how oversold we can get in a bear market. But I do think today was capitulation. Anyone who got long yesterday took a lot of heat, and probably got stopped out. Only one way to go after that, and that is up. I think we'll see some momentum to the upside, but I don't think it will last long. But bear market rallies can be quit sharp. Here's an interesting fact from todays IBD:
"The nine biggest up days in Wall Street history all occurred during the bear market of 2000-02."
In looking for some clean charts to trade, I only saw one I liked. It is CPHD:
I may consider buying this stock as it breaks $32.50. I would only look for a couple of points. Otherwise, I want to stay in cash and look to get positioned for what I suspect could be another leg down.
1 comment:
I'm focusing on the banking center to help confirm the bottom. If these stocks hold and move higher, it means the credit crunch is factored into prices enough for institutional buyers to start taking positions.
Given the Fed is cutting interest rates, I'm betting that bank stocks go higher from here.
neumes
www.millionaireneumes.com
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