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!

Art Cashin called yesterday Capitulation! But is it?

Art Cashin of UBS and a guest on CNBC said that yesterday's action was as close to Capitulation as it gets and he thought the bottom has been put in. Share volume was about 2 Billion shares yesterday which gave Cashin his confidence level. I am not as sure, as he is, that the bottom has been put in. I still believe we are headed to a Dow of 7,300. Even with yesterday's huge rally, we closed below the 20 day Moving Average on the Dow.

If Art is correct that the bottom is in, I think we are staying in this range between 7,990 and 9,700. That's a nice range to make some money if you are willing to get in. Play this range as it should last for a long time. Remember the wise investor is Buying when others are Selling, and Selling when others are Buying. If the market does go to the level of 7,300, I am confident it will hold and rally up a lot so be willing to buy anywhere near those levels.

UPDATE:6:15am PST
Art Hogan a frequent guest on CNBC also said we have retested the lows and we will be in a range of 8,000 to about 9500 for a while. He was the first to call the bottom back in October. So there you have it from 2 real good pros.