US Stocks Rocket Off Multi-Year Lows

Stocks set a multi-year low as more fear about the economic situation grew.  However, stocks found footing and with volume soared from its lows.  Is this the bottom?  Time will tell, but the move off the lows was very powerful and with volume.  At its lows today (Thursday) the NASDAQ (^IXIC) was off 50% from its October 2007 highs.  Extreme moves like this usually result in massive snap back rallies.  After the 1938 lows the market rallied 50% from its lows and we could see something similar with our market.

Do not get greedy here, although we may have put in a bottom we need to confirm the rally.  Look for those stocks who are breaking out to new highs or from support levels with excellent growth in fundamentals.  These stocks will be the ones who rally hard in a new confirmed rally.  It’ll be nice to see some upside after over a year of a downtrending market.

Enjoy Friday’s action.

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