Basing Action Never Feels Good

We're trying to find some footing here.  After the treacherous decline of the past few weeks, it will take some time to patch the road to recovery.  Don't expect a V-shaped bounce but instead look for a combination of "W" and "M" patterns over the next several months.  If this happens, it will be promising.

We need to build a solid base for stocks to work up from.  We need to get ready for 2009.  We need to see backing and filling to create strong support levels.  This action will rid any doubters and those who just want to make a quick buck.  Volatility necessarily has to come down and the trading atmosphere has to be boring.  When this happens, we will be there.

At that moment, things will slowly creep up week-by-week.  You'll see earnings estimates stop going down and upgrades handed out.  But, that's too far in the future to talk about right now.  All we want now is some churning action.  No more big surprises is good for this market.