Is this the low?
That is impossible to know. As I had stated previously, I was legging into the stocks I wanted to own on this dip, and bought fully into 2 of the 5 yesterday when they were down on the session. Both exploded upwards, and would have been incredible day trades. However, I plan on holding these longs for awhile.
I had been of the opinion that had we had one more significant down day, this could have been the low, as many of the oversold indicators were about one day away from being in a perfect zone for buying. The market rarely accomodates our plans perfectly, which is both the beauty and the frustration of trading.
As you can see on this chart, the S&P short term timing system has been on a fantastic run, getting us long very early yesterday and enabling us to cash in on the big up day. Since those signals are also now on my trading service, they will not be posted live here.
I do think it is too early to call this the low and celebrate, but I do have a substantial long side position that I will look to lighten up into years end if we rally, and add it back on during what I think might be a first quarter decline. The cycles still favor a December low point, and the announcements this am that the worst of the subprime fallouts are behind us, seem difficult to believe. All it will take is another scare there, and poof, 500 points can come off the Dow instantly.