19 February, 2016 Financial Planning

Has the Stock Market Bottomed?

After getting off to the worst new calendar year in history, yes the worst, are we now at the bottom or is this the prelude to a bigger pullback? 

First, for the average long term investor, the best advice is to remain calm and stick to your plan. Calling a bottom is no more accurate than forecasting the next visit from space aliens. 

Having said this, I have been tracking Matthew Tuttle, chief executive of Tuttle Tactical Management to provide some technical insights into some expectations. If this all sounds confusing...it is. 

First, He states that if the S&P 500 breaks through the 1934 point level ,would persuade him that the sell off is over. A classic V shaped correction. But if it doesn't, then the sell off is not over. 

He continues by saying that there " is more to it than surpassing a key-chart-resistance level. A move above 1,934 ,would be confirmation of total capitulation that have already been observed." 

"These include the move by Treasury's to new high as investors flee for safety during the most intense portion of the stock market sell off, followed by a retreat in Treasury's, and a rebound in yields, as stocks began to recover, and a surge in decliners as a percentage of total volume during the selloff." 

Holy Smokes! Well folks, that's the way many decisions are made on Wall Street. 

Here is my way. Buy low. Catch bigger dividend yields. Wait. Smile. 

Live Well. Invest Intelligently.