How You React
I’m a little surprised we’re revisiting the Jan lows a second time, but we haven’t broken those lows from the March retest (yet) and I don’t really expect them to break. Volume looked pretty strong on the reversal day yesterday, and we didn’t get to those lows on today’s strong (but weaker than yesterday’s) volume. Breadth as measured by trading above 50 and 200 dma is stronger on this retest than it was on the last retest.
Index action isn’t going to influence what I do, anyways.
Not everything is getting hammered. Some things are working (even if they’re not the things you and I are in). Some things are ALWAYS working.
How you react to the market is more important than how the market acts.


July 3rd, 2008 at 9:26 pm
Bill,
Hope I’m wrong, but the VIX trading in the mid 20’s is not indicative of a major bear market bottom. All of the most significant lows since 1990 have occurred with the VIX in the mid 30’s and higher.
July 8th, 2008 at 9:32 am
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