In my article reviewing the 4%  drubbing of the markets on the 15th of September, 2008, I mentioned that when everything seems to be doom and gloom, we tend to make market bottoms and setup reversals.

Take  a look at these headlines:

Poof! There go Americans’ dreams

The end of the Shopaholic Nation?

Morgan and Goldman shares plunge as fears rise

GE shares tumble amid financial worries

Is Your Money Market Fund the Next Subprime Mortgage Debacle?

Today we have established all kind of bearish signals in the market. We’re headed to new lows, and will end up testing levels not seen since 2005. That said, once we get there I’m putting the stake in the ground that it will be the bottom, and withing 2 to 3 months the market will recover.

I’ll post charts and analysis after the market closes. Along with some new short picks

-Steve

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