| With the general market down 50% and financial and | | | | continues to baffle me why people actually pay |
| housing down 80% over the past year and the | | | | brokers and advisors for that kind of |
| market indices down at 12-year lows, there is market | | | | recommendation. But we don't know, they could be |
| sentiment that we must be near the bottom. | | | | right and the rally crowd is wrong. |
| From a long-term investing perspective, this is a good | | | | None of this stock market sentiment is to suggest |
| time to buy in, although the entry into positions | | | | that the recession is over. The underlying economy is |
| should be gradual to account for further price drops. | | | | still in very bad shape. However, the sentiment of |
| Also, dollar-cost averaging (buying a fixed dollar | | | | the stock market participants is that the markets |
| amount at regular intervals) can be employed. | | | | have gone low enough (how much lower can it get?) |
| Notable bear market players are saying a | | | | and that it is time to reverse direction. |
| bear-market rally is coming and some are even | | | | For short-term traders, it would seem making trades |
| saying a big rally. So, the sentiment is that the | | | | on the long position is the proper move for now and |
| markets are due for a bounce with the open | | | | that shorting is on the high-risk side. Follow the |
| question on how big a bounce. Some have disclosed | | | | technical analysis indicators for the best read on |
| that they have sold their short positions and are | | | | trend reversals to the upside. |
| making a play on the long side. | | | | Comments are for informational purpose only and do |
| For brokers and advisors who are recommending sell | | | | not constitute stock trading recommendations. |
| at this time, I tend to think they are wrong. It | | | | Copyright © Mar 2009 StockTradersPlace. |