Some Nice Bottoms To Look At
I’ve postulated that January was the bottom, with March being a low-volume retest, a few times in a few places, like Triple Top in the VIX and Fast Money Alert!, and the internal blog link-fest post Comments on Recent Market Action.
Here are some charts of nice bottoms, indices of U.S. market components that clearly met their lowest points in January, with re-tests in March that resulted in significantly higher lows. Charts are clickable for a larger view …
This is the oil services index.
This is the Dow Jones steel index.
This is the Dow Jones transportation average.
This is the Dow Jones REIT index.
Remember always, it is NOT a “stock market,” but rather, it is MARKET OF STOCKS.
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April 14th, 2008 at 12:54 pm
Wow, that’s a provocative headline :-)
April 15th, 2008 at 5:42 am
My favorite provocative headline was “Topless European Models” in a magazine that was doing a comparison of new convertibles being imported to the States.
On a serious note, there are many different industries and several different MSCI country indices that show higher lows in March than in January. Before China’s market collapsed (which BTW is still above the March lows), it and the other EMs would lead the U.S. out of any corrections in the past few years. I believe that there are industries and countries leading the U.S. out of this correction, as well.
April 15th, 2008 at 8:01 am
Mike, just found your blog a few weeks ago and love it. I saw you linked to the Seeking Alpha post…just curious, where do you land on the “debate”. I personally don’t read SA…it just never made it to my list of daily must-reads.
April 15th, 2008 at 8:03 am
Sorry Bill…meant to post that on Mike’s blog. I know where you land on SA, and I tend to agree with your view. Feel free to delete the misplaced comment.
April 15th, 2008 at 8:03 am
And FYI, I really get a lot from your blog…keep up the good work. (and I promise, no more comments until tomorrow!!!)
April 15th, 2008 at 6:29 pm
Bill, this turned up in my latest Google search.
There’s always a bull market somewhere. Easy. Sector rotation. I don’t know why everyone just doesn’t buy sectors when they bottom and ride them up. Why bother buying sectors that are going to go down? Seems like an awful waste of energy.
April 15th, 2008 at 6:55 pm
There really IS a bull market somewhere, all the time. There’s something going up in even the worst bear market and even the worst correction. If one is open to looking outside the U.S. or looking at asset classes other than stocks, the world is (potentially) their oyster.
The key is just manning up, forgetting about the environment and focusing on what you’re gonna DO about it.