Is it time to buy stocks?
US stocks are at or near the lows of the year. Is it time to buy or accumulate?
News Headlines
  • Gold hits latest record high, near $1,830- AP
  • Rate on 30-year mortgage falls to lowest on record- AP
  • Philly Fed factory activity plummets in August- Reuters
  • Jobless claims rise 9,000 - Reuters
  • Home sales dropped 3.5 pct. in July, hit 2011 low- AP
  • Oil falls sharply as banks cut growth forecasts- Bloomberg
  • A second Great Depression, or worse?- NYTimes
  • S&P under investigation: The backlash begins- Breakout
  • Fear (VIX) Spike
    Spike in volatility indices usually signals a market bottom.
    Bad Technicals
    SPY seems to have broken recent support levels.
    Bad Seasonality
    Summer is usually not good for stocks. Wait till September to buy.
    Relative Value
    Buying when SPY is below 200 day moving average is a good relative value.
    US Debt Deal
    US Debt deal may result in spending cuts and economic slow down.
    Reasonable P/E Ratio
    Company earnings have been reasonably good and current P/E ratios look reasonable.
    Panic Selling
    Indiscriminate selling usually signals a market bottom.
    Negative News
    News in the media is too negative and pessimistic - double dip recession, sovereign debt problems, etc. This is usually a contrary indicator.
    Sea of Red

    For the first time in history, all 500 stocks in S&P500 index went down!

    No Panic Among Pros
    Fund Outflows
    Domestic outflows, excluding ETFs, hit $9.4 billion last week, surpassing the $9.2 billion outflow during a week in October 2008 and the most since 2002.
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