Tentative Bottom

When the Buy/Sell Ratio, BSR, moves below 0. 20, the market is substantially oversold and it's time period to be searching for an explosive recurring in stock prices. BODY:This marketplace is opening to imply to me of late 2008, earlier 2009.

The VIX is increased and our own Market Timing Indicators really are low. However we are not really near the sorry state that remained with us back then by a long shot. For instance, the VIX come to a good incredible substantial of $80. 86 on November 20, 2008 and it reach a higher of “only” $4
5. 79 on May 20, 2010 when the Mighty Dow dropped 376 points. However, we all comprehend through longer experience that when the Buy/Sell Ratio, BSR, will go below 0. 20, the market is considerably oversold and its time frame to be seeking for an mind-blowing rebound in stock prices. Certainly, the BSR closed at 0. 12 on May 20th and the market rebounded in order to the extent that the Color Guard signaled a green light in the Price column on June 3rd. Of course, this particular recurring was in fact simply a teeny bounce compared to the 30-day rally which followed the November 20, 2008 selloff; however, it features value in that it was not able to build up into a advantageous economic recovery as did the November 2008 rally.

In the two instances, the market moved to reduced lows.

In 2009, the final low occurred on March 9, 2009 and in the present case, the Value of the VectorVest Composite hit an intraday very low of $2
2. 69 per share on Tuesday, June 8th. Will this be the best low for this downturn? It could be, but don't bet the farm.

The good news is that the June 8th intraday low of $2
2. 69 was two cents higher than the previous intraday low of $2
2. 67 hit on May 25th.

The bad news is that the BSR closed at 0. 13 on May 25th and 0. 11 on June 8th.

I would have liked to see it close above 0. 13, but there's still more good news.

The market has hit higher intraday highs and higher intraday lows each day since Tuesday, June 8th.

The best news is that the Futures took a real shot this morning due to a poor Retail Sales report, but recovered quickly on a better-than-expected Consumer Sentiment report. This shows that bargain hunters are alive and well. But they aren't as greedy as they should be. Upside volume has been weak and leads me to label the June 8th low as a Tentative Bottom. Toning down THE TIGER With BEAR CALL CREDIT SPREADS. Due to the intense unpredictability we were having in late 2008, we created a series of reports along with the concept of “Taming the Tiger,” i. e. , dealing with movements.

The approach to carry out this, we said, appeared to be to execute low-risk trades by securing your bets. On 12/05/08, for instance, we highlighted exactly how in order to safeguard yourself by hedging your limited stock positions by obtaining out-of-the-money Call Solutions. We then followed way up with much more presentations adding this theme. At this point is the time frame to re-visit this low associated risk strategy to generating money. To find out the way in which it's accomplished, check out the VectorVest University to find Mr. Glenn Tompkins, who, incidentally presented our first Taming the Tiger presentation, provide this week's outstanding “Strategy of the Week” presentation, “Taming the Tiger with Bear Call Credit Spreads. “Author writes frequently on stock charting software ,

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