But it also pays to be cautious. I think if you’re an astute trader who is shorting a falling market or even in cash it pays to let the market prove itself before loading up the boat on the long side. I found this chart worth clipping to add to my collection for future reference.
clipped from disciplinedinvesting.blogspot.com

bear market recovery table
blog it

2 Responses to “It Can Pay to be Quick”


    As the chart illustrates, money moves fast; over bought or over sold mean nothing when a trend changes. I believe we are out of the woods and the market will be up 20% by xmas. Why you ask, simple; gas is down over 60%. To most consumers who are not affected by wall streets blues or bank spreads this is going to be a great xmas. They buy gifts, funds buy stocks, prices rebound.

  2. Jeff Pierce Says:

    I tend to agree that we're going extend these gains in December to close out what has been a miserable year for many. However I do believe that we will see new lows on the Dow and that this is not a bottom so we all have to be careful because when this does turn back down it's going to be nasty.

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