Some Back Up Information on the State of the Markets

This article was published earlier today at cnbc.com, including observations by Jon Najarian whom I consider a very qualified commentator and investor. Something worth reading along the lines with my previous blog.

Nice to know that a knowledgeable advisor shares similar opinions.


Jon Najarian: Buy the Fear, Technical Signs Suggest Lows Hold

One Final Blowout

At this time, I'd like to see the S&P500 hold above the 1120 level and a final blowout like the one we are experiencing today combined with heavy volume. This action could be viewed as a healthy, and painful, purge of the markets.
We shall see if this holds true in the coming weeks.
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The Ongoing Bear Market May Find Support Soon

Alright, we are piling up paper losses and it seems like there is no end to this downward spiral.
Looking at the S&P500 chart, i see a hint of some near term support. Should the S&P500 index close at or above 1120 within the next two weeks, I would expect this point to be the bottom and we could see a turn around of the markets.
Look for stocks in the heavy construction sector to be the leaders in this cycle. Some of these candidates are: Granite Construction Inc. (GVA 18.20), Terex Corp. (TEX 14.32), Foster Wheeler (FWLT 21.40) and KBR Inc. (KBR 27.26) to name a few.
Extreme caution should be taken before going "all in" at this time, we must be very selective in our choices.
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