After yesterdays post on the long term momentum of the market I got a couple of emails about the short term momentum. In other words, people were wondering "How far will the market drop before it bounces back?" That, no one knows for sure. But the charts suggest there should be a few really great days, then perhaps some more selling before we reach a short term bottom. What this means is that today, for example, is not the best day to be a seller if someone wants to move away from stocks. There could be some better days coming up soon, and it might even be smart to do that.
Timing the market of course is rather difficult and most investors do not have the stomach to even try. So in the end the best medicine remains a well balanced, conservative investment approach that ebbs and flows with the market. Just remember the best way to do that works more like a dimmer switch than a light switch when it comes to timing your moves.
Here's today's video: