Where Are The Markets Going?

It seems that there's no end to the selling. We just can't get enough bad news lately. Tuesday's rally was just another feeble attempt by the markets. "Where's the bottom?" traders keep asking. We are retesting recent lows and if the bad news don't stop, we could see a break from those lows. Bear markets are a necessary evil that's needed to establish a new trend and bull market. If you can't day trade or are not willing to keep an eye on your stocks, then cash would be best. One strategy that you could use is to wait for the markets to be at an extreme reading and then go with the trend. Right now the markets are somewhat oversold and could be getting ready to reverse the short term trend. What that means is that if you want to buy low and sell high, this could be the opportunity. However don't expect too much profit. Just a quick couple of points just until the markets get overbought once again. Next week we are bound to see a nice bounce up if not tomorrow. Remember to buy only the strongest stocks such as the ones that just posted great earnings.