Sunday, March 11, 2007

Markets Rebound, But Not Yet Out Of The Woods

The U.S. stock market was up this week, which indicates why I told you last week not to sell everything on Monday. Still, the information I'm getting says the odds favor another push down, to test and revisit the recent lows (and possibly lower) before we get a full recovery. The bounce might start failing this week, or a couple of weeks from now, but it likely will fail.

Last week I advised against short-term trading in general, but if you are uncomfortable with your level of investment then now you could sell some of your holdings (especially stocks that have not rebounded much). If you are building longer term investments, then the stocks you want are now on sale -- so start getting some of them. Some companies have already bounced back strongly, and those also should be on your shopping list.

When my sources indicate it's appropriate to be a more aggressive buyer, I'll pass the word along. In the meantime, keep some power dry.

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