Monday, March 2, 2009

Has Anyone Seen My Donkey?

I think I lost it, if you know what I mean. Wow, is this market ever going to settle, or are we just beginning a ride to 5000 ? If you've lost your donkey too then you know how frustrating it is to watch the market crumble away with the economy. Everybody selling at the same time just increases the bias to the downside, and we are seeing short selling running rampant. Even the retail investor is beginning to smell blood, and when they panic they make bad decisions. Many are either short or are simply sitting on the sidelines waiting ( and some are looking for their lost donkey also ).
In reality the market has reached an oversold status that it simply cannot maintain, and we may see a short swing up very soon. But that may be short-lived. If we are ever to see a recovery in this market it simply has to bottom. And how will we know when that is? Well, it is always found well after the fact and by then you will know it as people rush back in to devour the bargains being generated during this major sell-off. I'm trying to analyze the picks being generated to prepare for the spike up. Take advantage of the spike when it comes because it will probably be a whopper. Excuse me while I look for my lost donkey.

Have a good one,