Saturday, July 5, 2008

Sign of a bottom

With market continued to turn lower, and oil continued to turn higher, I think following things will be signs of a market bottom, even though it maybe a short term bottom:
  1. Oil touches $150.
  2. Financial stocks refuse to drop, even with bad news.
  3. Airline stocks refuse to drop, even with bad news.
  4. Coal stocks continue to drop, even with new record high oil.
  5. Fertilizer stocks continue to drop, even with record high agriculture commodities.

We already see 4 and 5. We need 2 and 3, specially, we need 1, we have to have oil at a new record in order to see a short term bottom in the market. I think we're near that point, maybe as early as next week.

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