Technical indicators have just been signaling buy signals. It may be that the recent volatility may finally be resolving itself and a more positive phase developing. We don’t hang our hat on technical analysis, but we do pay attention; especially during volatile times such as recently. Our investing process is more driven by fundamentals, but technical analysis can give important signals that change is coming. We are paying attention.
We always believed the current downturn was not the start of some new bear market, but another garden variety correction. If the technical signals are correct, then that correction may just be about over. Fundamentals still appear to be very strong, the consumer is healthy and the holidays are upon us. Stay steady, my friends.
The Lonely Bull