Bloody Wall Street

Hey Gang,

 “The key to wealth is to buy when there is blood running in the streets and sell when they are pounding at your door�

This is a quote that I keep on my desk in my home office.  Unfortunately, I don’t have who wrote it, but it has been a quote that has helped spur my confidence in trading and investing in some of the toughest times of the market.  

So when is there blood in the street?  And what does that refer to?  Well, when things look the worst in the market, it is generally an opportunity to buy and when things are at there best, it is often times time to sell.  Today there is blood in the streets.  Just take a minute or two to read the financial headlines as major investment banks collapse and others are on the brink.  Not only are the headlines bad, but market sentiment indicators confirm that market sentiment is extremely bearish. 

Lets look at the $CPC and the $VIX today.

 

 

 

Both of these indicators confirm the oversold nature of the market in the short term.  In my opinion, we have reached a temporary market bottom.  We may retest the bottom, but for my money, I am a buyer for the coming month at least.  For more learning on these indicators feel free to email me at jyaede@prosperlearning.com and I can direct you on where to go.

 

Happy Trades,

Jeff