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This market is starting to imply me of later 2008, earlier 2009.

The VIX is raised and our Market Timing Indicators happen to be lower. However, we are not really nearby the pitiful condition which was around back then by a long shot. For example, the VIX reach a good extraordinary excessive of $80. 86 on November 20, 2008 and also it come to a high of “only” $4
5. 79 on May 20, 2010 when the Mighty Dow decreased 376 points. But most people know from long experience that when the Buy/Sell Ratio, BSR, moves listed below 0. 20, the market place is significantly oversold and it's period to be seeking for an explosive rebound in stock prices. Certainly, the BSR closed at 0. 12 on May 20th and the market rebounded to the extent that the Color Guard signaled a green light in the Price column on June 3rd. Undoubtedly, this kind of recurring was simply a teeny jump in comparison to the 30-day rally which followed the November 20, 2008 selloff, though it has significance in that it was not able to develop into a advantageous economic recovery as did the November 2008 rally.

In both circumstances, the market moved to lower lows.

In 2009, the final low occurred on March 9, 2009 and in the active situation, the Price of the VectorVest Composite struck 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. Taming THE TIGER With BEAR CALL CREDIT SPREADS. Because of to the excessive volatility we were encountering in late 2008, we made a sequence of presentations along with the concept of “Taming the Tiger,” i. e. , coping with unpredictability.

The technique to complete this, we said, was to perform low-risk trading by securing your bets. On 12/05/08, for instance, we illustrated how to protect yourself by securing your short stock opportunities by getting out-of-the-money Call Choices. We then accompanied up with much more presentations integrating this theme. At this point is the time frame to re-visit this very low risk technique to generating money. To find out the best way it can be executed, visit the VectorVest University in order to see Mr. Glenn Tompkins, who, by the way offered our first Taming the Tiger presentation, provide this week's brilliant “Strategy of the Week” presentation, “Taming the Tiger with Bear Call Credit Spreads. “Author writes frequently on the topics. To know more about stock charting software or stock market software from author, visit

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