Flush!

Do market technical readings mean much in times of war? The answer is not much! Investors are more influenced by war headlines than prospects for the companies that they might own. Fear, combined with herd instincts, is more prevalent than rational analysis. Trying to divine trends from price action is nearly worthless, except at extremes.

Monday looked like an extreme. Selling begot selling, just because others were. Volume was up, especially in the old growth and technology names. Only time will tell whether this was the low for this recent correction, but it looks like one. It should at least be an interim one – a good flush. The next day, the recovery was bolstered by rumor of a willingness by Iran to end the war!

Buyers on Monday, especially in some great growth companies, got some really good values. Even if this negative period persists, with time, these prices and levels should be seen as a terrific opportunity. Remember one of the old investing maxims: Buy when others are selling! Stay steady my friends.

-The Lonely Bull