Stocks retrace 90% of November 13th’s gains and find support
Tuesday’s stock market action was certainly not one for the faint of heart. The awesome volitility seen during the day makes an old wooden rollercoaster look like child’s play. We are seeing extreme pessimism, Wall Street and Main Street continue to be extremely negative on the economy and the stock market. However, from our October ‘07 highs to our November ‘08 lows the market was off roughly 50%. The stock market certainly has foreshadowed a bit worse than what we have seen so far. With that said, the market is always forward looking and we may be setting up for a bear market rally. Pay attention to strong stocks in strong industries and if this market has enough upside power we’ll see a rally that will last longer than a week.Here are some stocks to watch:
- ALGT
- DLTR
- AXYS
- AFAM
- LHCG
- SXCI
- VOLC
Remember, this isn’t a “buy list.” Do your own homework! At any rate, if we see a rally it would be a much welcome event for many of those who are suffering massive losses. Bear market rallies do occur and they can be profitable to those who recognize them. Will this market rally, its up in the air but its poised to rally here. EnjoyMS
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