Usually, I like to see the 4 major indexes to hit a Big Bottom on my program before buying, but today may be one of those possible tradeable Big Bottoms. I haven’t figured out how I am going to trade it (if at all) so I just wanted to update you as to what happened in the program today and give you a screenshot.
First, over the holidays ( on December 22, 2008 ) the DIA (ETF for DJIA) hit a Big Bottom. However, nothing else bottomed on that day. Plus, it was really a holiday trading period so I don’t truly trust it.
Today, January 14, 2009, the SPY, IWM, and $COMP all hit a Big Bottom today. That’s 75% of what I call a true capitulation moment. So, take it for what it is worth.
Filed under: The Market
