Last Week Set The Stage For A Bull Market
Smokey the Bear just flipped his sign to “Safe” and headed toward his cave to hibernate. Just when the match touched the kindling, a drenching rainstorm put out the fire. We can now confidently walk in the forest (AKA, the stock market) once again.
After last Monday’s high volume sell-off drove the market to a new low, we were facing an uncertain Tuesday. The media kept fears high with a litany of negative reasons for Monday’s sell-off (albeit already known), “proving” the stock market was treacherous and destined to drop further. As I wrote then, I thought we might have a mini-flash crash that could be opportunistically used to pick up additional positions at bargain prices.
Here is what happened and why it should be viewed as a sign that the stock market has changed direction.
This article is posted on SeekingAlpha.com
