dshort

Pierced Hopes for Stock Bottoms

"Wednesday was a rotten market day, in a rotten market month, in a rotten market year, in a troubled economy."

I couldn't agree more, and Thursday was even worse. The S&P has now snatched the gold medal from the 2000-2002 bear market as the worst decline in the history of the S&P 500 (which took its present form on March 4, 1957). The question now is whether it will emulate the grueling decline in the Dow in 1929-32:

dshort.com/charts/bear...

Frankly, my favorite position now is cash. When the S&P 500 rises above its 10-month moving average, then I'm ready to wade back into equities:

dshort.com/charts/SP50...

Meanwhile, capital preservation has trumped my quest for alpha.