Monday, October 13, 2008

Looking for follow through

Today's gains in the broader markets were massive, but simply a reversal of part of last week's losses. Pundits are now arguing whether it is a bear market rally, or the beginning of a new bull cycle. Even the bulls feel we may retest the lows before moving higher, so everyone will be looking for some follow through on today's surge. News tonight regarding further action from the Federal Reserve and Treasury to unfreeze credit markets may spur more action tomorrow. In any case, I'll be waiting to see how it all shakes out in the coming weeks before committing any more capital. It may even take longer than that to see if we've put in a bottom, perhaps until the end of the year.