The bulls are waiting in the wings

We believe there is some light now shining at the end of the bear tunnel. We are looking for an intermediate term bottom for this market. By intermediate term, we mean a bottom which would hold for 5-8 months and provide a strong rebound rally, where individual stocks could go up 300-400%. We believe this BOTTOM should be in the next month or so. Very tentatively, we are looking at the date surrounding mar 27th.

Leaving all technical analysis aside, lets look at the psychological perspective here. From a bull-bear perspective, the last bastions of the bull are about to give way. By last bastions meaning - the final few bulwark stocks which have held up relatively well - healthcare (e.g HUM), Oil (XOM) and chains (e.g. WMT, MCD). Almost every other stock has been obliterated. Basically, the bear has declared victory over the bull in every battle(Stock) i.e the bear is satisfied (at least for a while). In the previous bear markets, we researched - we found similar behavior. When the final few bastions fall, there is indeed a bottom.

Accordingly, we have trimmed out of all index shorts. We are short a select few names like XOM. We believe XOM could test the double bottom area again.

Addendum: March 11th is another important date we missed. This could also be the potential turn date. It is really late in the short game now. We are searching wide-eyed for long buy triggers. After all, bottom fishing is dangerous.