Two Months into the Year, the Market Traded a New 12 Year Low

The Waterloo campaign continues, the market is on retreat. The bear coalition is defeating the once mighty Wall Street.

The market registered a major technical break down. On monthly, SPX500 broke decisively the year 2002 low. The market dropped all the way back to 1997. You don\'t think buy-and-hold (or buy-and-hope) strategy should be thrown to the garbage?

http://3.bp.blogspot.com/_hxepSAiAfKo/SasEAfLAVuI/AAAAAAAADvI/PRxexFrLlUo/s320/SPX20Yr_03012009.png

The technical picture is NOT pretty. Where is the ultimate low of this bear market?

The market continues its vicious cycle of deleveraging. The big boys are selling, and they are selling hard.

The market can\'t even muster a decent bear market rally. In the last bear market from 2000-2003, on three occasions, the market went on with a multi-month ~20% bounce. Each happened when the full stochastics on Monthly registered a major oversold signal. Since the mid of 2008, the monthly full stochastics went below 20 and has been under 20 since. Guessing when the market turns is a loser\'s game. CANSLIM investors don\'t catch falling knifes.

the remaining articles can be found in my blog,

http://thewallstreetoperator.blogspot.com/2009/03/two-months-into-year-market-traded-new.html