Sunday, April 13, 2008

The U.S. Equity Market's Many Signals

While record "short" positions and the extreme negative sentiment of market participants have historically signaled a bottom, I am not ready to put my hard earned money into U.S. equities (with the exception of certain commodity based equities) just yet.  Aside from the fact that I am no better than anybody else at calling bottoms, I don't see a need to make such a call in any event.  I like to buy stuff when it is going up (after it has gotten killed) and short stuff that is going down (after it has had an "unsustainble" (by my definition, whatever that is) run to the upside.  As we speak, the U.S. equity market is not their yet.  That could change at anytime, or not for some time.  

Keep your eyes on the data.

Mentatt (at) yahoo (d0t) com

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