Look at these indicators: Nasdaq New Highs and Lows, Nasdaq Summation Index, $BPNYA, and $BPNDX:$VXN. You'll see we are in a process for making a solid short term bottom, at least for 2002 unless these indicators get overly bullish on the return back up on our way to 1500-1600 by years end.
Nevertheless, I never said this would be a bottom to end all bottoms. I'm saying any weakness from now till the end of them month should be accumulated and held till the end of the year, or unless these indicators get overly bullish before the end of year get's here, it's that simple.
All the sheep are waiting for Nasdaq 1000, before going long, and even CNBC has had 5 analysts on over the past 2 weeks predicting it before year end. That's precisely why I don't think it will happen, and if it does it will have to be sharp and fast.
Regardless, it will be short lived, and the return back up will be just as fast if not faster. Therefore, I've already started accumulating small amounts of stock that will have a nice run over the next 2-3 months. I will be clown long when the ship changes direction which is soon. Others will wind up getting arms and limbs taken to the meat grinder by shorting every uptick while I continue to add to my longs on weakness.
I will do so until we get into the oversold range again or when CNBC informs the public the bear market is dead. Once that happens I will have already dumped my long positions for short ones. |
