Have Stocks Given Us the Green Light?

A little over a week ago I wrote about why we hadn't hit the bottom yet. The market has fallen an additional 500 points in that one week span. The Dow and S&P have both hit 12 year lows. So now I ask again, is this the bottom? Is it finally safe to get in? While the market looks like an even better buy, the answer is still no. Why? For one, all the questions we asked before have not been answered. We have no more specifics on government involvement. Banks are getting more capital, but we still haven't seen a change in them. Consumer sentiment is down along with housing and manufacturing. The news has gotten worse so why buy now?

If you feel necessary to buy or adjust your portfolio, I would stick will large, blue chip companies. GE still has some problems but for that company to be at $8 right now is a steal. Microsoft under $20 is also a good buy. These companies are huge and will not go out of business. If you put these in your IRA, you have plenty of time for these to go up and give you great dividends. If you are just trading and want some growth, watch the dollar. With the dollar strengthening, commodity prices have been suppressed. If we see the dollar lose ground, commodities could be a big buy.

As for now, keep watching the news. With another quarter about to close in several weeks, earnings will be good to look at with any outlook given being the key. The market will not go up until we see positive economic indicators or see companies starting to see positive growth opportunities and give a positive outlook. A bear market is the perfect time to get yourself set to make some cash money. You just have to be patient and don't jump in too soon.