Yes it's a bear market. Yes it will continue to be a bear market until proven otherwise. Yes the economy is still in tough shape.
It's easy to get locked into a particular view. Sometimes though, it can cause paralysis when things change and we don't expect it.
Is this one of those times?
I don't know. But as we continue to rally bearish levels often rise. And when that happens it creates an opportunity to continue the rally.
We didn't sell-off today, although it was a little more volatile. The fact that we tacked on more gains could be an indication that we have made at least a temporary bottom. We might just trade sideways for awhile. We could continue higher.
As some on this board noticed, mortgage rates are dropping fast and some banks are issuing locks like crazy. This could be a sign that the credit markets are starting to unfreeze. If you think about it, they really need to if anyone is going to survive this economic storm. Continuing the way we are going is a prescription for more pain and pressure is being exerted on the banking industry to lend in an attempt to get this market turned around.
Now I'm not suggesting that we won't go lower again or even hit a new low down the road. I am suggesting that something may be changing in the market and we need to be receptive to it. It's easy to get locked into a certain mindset and that's when opportunities can be missed.
I'm not bullish. Yet. But I am more optimistic today than yesterday. The market will bottom months before the economy actually turns around so things can still be a mess without the market acting like it.
Just something to consider.
It's easy to get locked into a particular view. Sometimes though, it can cause paralysis when things change and we don't expect it.
Is this one of those times?
I don't know. But as we continue to rally bearish levels often rise. And when that happens it creates an opportunity to continue the rally.
We didn't sell-off today, although it was a little more volatile. The fact that we tacked on more gains could be an indication that we have made at least a temporary bottom. We might just trade sideways for awhile. We could continue higher.
As some on this board noticed, mortgage rates are dropping fast and some banks are issuing locks like crazy. This could be a sign that the credit markets are starting to unfreeze. If you think about it, they really need to if anyone is going to survive this economic storm. Continuing the way we are going is a prescription for more pain and pressure is being exerted on the banking industry to lend in an attempt to get this market turned around.
Now I'm not suggesting that we won't go lower again or even hit a new low down the road. I am suggesting that something may be changing in the market and we need to be receptive to it. It's easy to get locked into a certain mindset and that's when opportunities can be missed.
I'm not bullish. Yet. But I am more optimistic today than yesterday. The market will bottom months before the economy actually turns around so things can still be a mess without the market acting like it.
Just something to consider.
