Dana Cole

No Bear Yet? Average Stock Already Down 30%

The problem as I perceive it as that we need a really good flush out on the down side, which we are not getting because diehard buyers are weakly holding prices up. This is the same as saying that we have not quite reached the level of pessimism that characterizes bear market bottoms. If most of today's buyers were to step aside for two weeks, they'd find themselves buying at levels which would all but guarantee them great profits. The same cannot be said for sellers holding back, however, since everyone still seems to be looking for a "test of the January lows" and not a rally upwards.