Turnaround Thursday
Sep 12, 2008

As many waited for more shoes to drop, the market managed to put in a positive day. More takeover rumors amid the financials caused the bears to close out and book some nice profits.

Technically, you probably know that a lot of people really are hoping that the market managed to put in a "double-bottom" and are acting on that view right now. We'll only know for sure by looking in the rear view mirror, but this alone probably will bring in some buyers especially if the strength continues. No doubt, we'll know a whole lot more if we see the 50 day moving average overcome sooner rather than later in this turnaround attempt.

One thing is certain, the news these days is chock-full of negativity (just see my link posts this week). Although it is certainly well-deserved given the current state of the economy and market, but when that happens, you have to make an effort to restrain your pessimism and stay opportunistic in your approach. Just as we do in over-inflated, over-hyped the "stocks only go up" kind of markets, we need to work on staying level amid all of the emotion and frustration. I know this is easier said than done, but your portfolio will thank you for it in due time.

Have a pleasant evening!