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Technology Stocks : Semi Equipment Analysis
SOXX 297.50-2.6%Nov 6 4:00 PM EST

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To: The Ox who wrote (50627)1/5/2011 12:41:33 PM
From: Return to Sender3 Recommendations  Read Replies (1) of 95383
 
Here a chart of the NASDAQ showing just some of the significant buying opportunities over the last 19 years:




Hallmarks of market bottoms include:

1.) High levels of F.ear. VIX should be making lower highs though.
2.) At least one 90% Upside day. There were many such days before the last bottom in 2009. It's hard to tell when it's really happening.
3.) Improving market breadth even as the market makes new lows.
4.) Investors Intelligence Poll will have more bears than bulls.
5.) Capitulation has already taken place with the highest levels of selling ever seen followed by smaller volume months.
6.) The first month of the actual rebound will have higher volume than the last of selling. Careful though as a bottom can be retested as it was in 2003.

Sounds simple but it not. We all let our emotions get the best of us at times. But I plan to buy much more stock at the next market bottom and thereafter by adding incrementally to my positions once the conditions above are met.



RtS
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