Critical re-test presently underway on the broad market indices. In our work 725-741 is the next critical area on the S&P. We closed just a hair above there today. Price action over the next few days will be key. Sentiment remains extremely pessimistic. There is yet another wave of investor capitulation now underway. Capitulation selling pressure is an awesome force. Babies and bathwater all out. I would not suggest buying here until we get some clarity on the outcome of this re-test either way. Heavy cash weight remains king.
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Danielle, your book and blogs have privided me the incentive to ignore my (ex)financial advisor's recommendation to “stay the course because one can't time the markets”. I'm much more at ease now that I'm in cash (GICs) and using it to accelerate the paydown of our mortgage. Thank you. I've just read the Niall Ferguson interview in the Globe and I'd be very interested in your thoughts regarding his speculations.