We can breathe a collective sigh of relief. The worst has passed… for now. Last October’s low has held!
We got a real good recovery rally yesterday. Some 4%! Volume wasn’t all one would like to see for those hoping for another “V-shaped” bottom, like last October’s. To my way of thinking, that is a good thing. I’d like for this to play out for a while; at least a month, or two… then, on to another great year-end rally! Wouldn’t that be nice?
I gobbled up as many shares as I could during the decline and crash. I encouraged others to do the same. When things appear the very bleakest and scariest, hundred of points down, that is the very best time to be a buyer. You don’t even think about it anymore, or check for further ‘technical analysis’ signals from any oversold indicators. You just drop everything, and commence buying!
We’re having a discussion elsewhere, and I am wanting to learn whether declines of the depth and rapidity that we just experienced more likely to result in a V-shaped bottom, as I just mentioned; or as my personal opinion currently is, that we can expect more volatility ahead, and that over the course of the next few weeks, and even months, we can expect a few more bumps in this road, offering another opportunity, or two, or even three, to be buyers again.
Hopefully, as you learn, grow and mature in this thing called investing, you will come to that place where the events of the past week are actually welcome! They are opportunities. They help us to attain our goal faster!
As I look at the pre-openers this hour (9:00 am EST), they are up by 1.3%. That’s healthy. A few more days, a little bit higher, then we can hope for a later retest of the lows, with another increase in volume, and a spike in that VIX measure of market fear… as shares pass from weak hands into strong hands. Let us be among the strong!
Here’s to your successful investing!
Harold F Crowell