Today’s market comments got picked up by DOW JONES MARKET TALK:
03/22 2:54P Selling Is So Bad, It’s Good For Bulls
(MARKET TALK can be found using N/DJMT)
2:54 (Dow Jones) Maxim strategist Barry Ritholtz, who turned cautious on stocks in January, is turning a little more positive. He says the advance/decline ratio is about 12 to 1 negative – an indicator that the
selling is overdone, making him more comfortable stepping to the buy side.
Also, the recent uptick in money supply bodes well for the market a few months out, he says. Investors’ response should depend on risk tolerance. Aggressive buyers should begin scaling back into the market between present levels and support Ritholtz has been “harping on about” at 1875 on the Nasdaq, 9900 on
the Dow, and 1070 on the S&P 500. More conservative investors should wait for a big reversal day – a high volume selloff and recovery with a swing of about 3%. (NPB)