A Good Day…Again

Great day in the stock market today with indexes being up 1 - 1.5% depending on the index. As I have said before, we get some of the best up days in a down trend. The down trend started middle of January and we have no proof yet it has turned. We have had 4 or 5 very nice up days now in this down trend (including last Friday which was a bounce off the low) but do not be enticed to buy stock. If you buy each of those good days you would have bought 5 times only to maybe get stopped out later as the down trend continues. We are now 3 days from the low and a follow through day must occur at 4+ days but don’t forget that doesn’t guarantee the bottom is in. Remain conservative and see how this plays out.