Wednesday, March 05, 2008

Trading Update for Tuesday

With the NDX up today, we don't look like getting to oversold in this round and with Thursday still forecast as an up day and the Wednesday effect perhaps bringing that forward a day, seems it is the time to get long again. In fact one of my indicators for the SPX is formally long for Wednesday. So I sold my Beazer puts and bought some Google shares near the close. Google's chart looks like it could have bottomed for this bear market or at least for a little while. There are a nice five waves down from the February high. Still, I'm treating this as a trade.

In case you think mid to late March is still too early for calling a bear market bottom, Bespoke point out that most stocks are already in serious bear market territory. Energy and a few large caps are holding the indices up.

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