In the previous story published on Thursday March 4th, I mentioned that we seemed to be close to a short term bottom. So the top question on your mind after the Friday reversal is “Are we there yet? Can I start buying again?”
The answer is “Yes”. The technical action on Friday was constructive (we did not hit a new low) and it is time to start buying. You may have already seen my Friday stock picks and noticed that I have started adding on some winners.
Q) Could the market go back down into the sub-3800s range (for the S&P500)? A) Absolutely and that would be another buying opportunity.
Q) Could I be wrong and market crashes from here? A) As an avid reader of this blog, you should guess the answer! “Yes of course its possible” — the market is always unpredictable (see second principle).
But its better to take a directional stand and provide clear guidance as opposed to playing both sides as common CNBC gurus do!
Do I hear the show “EZ Money” airing on CNBC soon? :)