Stock market update Nov. 21st: We hit bottom yesterday!

For all practical purposes, yesterday's closing 444 point drop to 7,552 and an intraday low of 7,507, satisfied my conditions that we hit the bottom of the drop in the stock market. I had said we needed to go to 7,300 plus or minus about 150 to hit the bottom, back in September when the market first dropped. Can we go a little lower and test 7,300? Yes, absolutely. But now you believe me when back in September many were skeptical of my market prediction. This is the time to start buying stocks again, well, at least ETF Indexes like the Dow, S&P, and Nasdaq. It was painful getting here for everyone I know. No one was sparred except those who were in cash only and not many went to total cash. Some symbols to look at buying SSO for one.

Some individual stocks are vulnerable as are some sectors, to further declines at this level. However, when you buy an Index, it minimizes the risk. But let me say again, we may go lower on the Dow, S&P and the Nadsaq but it is only to find the exact bottom. We will not go below 7,000 on a sustained basis and there is greater probability that we will go up from here and retest sometime over the next month or two and then we are done. By that time we will have a new President, the worst of the fears for the Auto Industry will be decided in favor of saving the industry and we will all feel much better. Don't miss this time to start to get back into the market as it is a once in your life opportunity! Good luck and be hopeful for beter days ahead!