Searching For a Market Bottom? Keep Looking

[jeffrey]

Stronger volume in stock trading Friday could raise hopes that the eight-day blowout on Wall Street is pushing toward a capitulation bottom.

Over the past week the stock market has posted its biggest drop ever, tumbling some 18 percent and triggering angst and despair among both investors and traders on the floor.

The powerful selloff abated Friday, and there also was a bit more intense volume accompanying it: close to 3 billion shares trading hands, nearing what most experts consider enough for capitulation...

But while few if any were using the term "capitulation," there certainly was talk of liquidation.

"I have a hedge fund that's up 40 percent this month but I question whether I have a future or any of my peer group have a future," Hugh Hendry, Partner and Chief Investment Officer at Eclectica, told CNBC. "The only defense to your portfolio is not fundamentals. The only defense left to investors this day is to sell their assets; this is a liquidation."


Higher Volume Indicates Push Toward Turning Point - Markets * US * News * Story - CNBC.com

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I basically agree. I've mentioned elsewhere that people need to be careful and not jump to conclusions about Friday's market performance. Depending on who you listen to and have read, we could be only half way down in fact....

However, I don't think people need to worry though. The market is a vast, mult-cellular organism. Just because some parts have broken down, that doesn't mean the entire vehicle is trashed.

My passive investments have been hit as hard as anyone's, but my trading is currently up by 30.9% in gain right now. Sure, it could change any minute, and I'm sure I'm just lucky more than anything. However, the point I wanted to make is simply that not literally everything on the market has gone bad. People are just panicking right now, but if you're a trader, you can take advantage of that. That's what I'm doing anyways, taking a little bit here, and a little bit there, whatever and whenever it makes sense to do so.