Are Investors Too Early for Calling a Bottom?
Filed Under Market Commentary |
9:00pmEST Too many investors are looking for a long term bottom here.
Friday’s whipsaw action had many investors feeling the market had put in a bottom. However, there is no denying the path of least resistance. Stocks were sent lower by the end of the session as the last hour selling by big institutions capped a dreadful weak for longs.
Are we heading for a recession or as some online pundits are calling for: Depression? Yes, depression as far fetched as it may seem it is always a possibility. The more likely situation would be either we avoid a recession or recession itself. A depression could occur however, the likelyhood is too small to have much weight to it. The best defense is cash and continue to build your trading capital.
How bad is it out there? Let’s take a look at the NASDAQ and S&P 500:
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