When you start to see headlines like the following at MarketWatch and CNBC, it’s time to start looking for areas to cover your shorts. It’s not time to go long, just time to switch your mind frame from being ultra bearish to more neutral. I’m not going to jump in front of all this selling pressure until I see a few more of my indicators stretched to extreme levels, but these type of headlines are a step in the right direction to get me interested in building some long positions.

The ultimate buy indicator is when you see such headlines on the covers of magazines at your local newstand. I’m still waiting for that signal.

Blue chips near 2-year low
Sell-off goes transoceanic: Europe closes at lowest point since ’05

Gloomy forecast for Wall St.

Go short.


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