Are We at Bottom

Everyone has been trying to call a bottom in the market for a while.   The markets have to stop going down and start going up at some point.  But is that point now?

It seems like there is a lot of strong evidence supporting the bottom.  Stocks are greatly undervalued; right now you can buy tons of companies for only a fraction of what they should be trading at.  In addition to the fundamental reasons stocks are also at a long term support.

The SPY has hit support earlier this year and has seemed to stop going lower, at least for now.   Those two factors are making many investors and traders think about a possible correction.

But are we really at a bottom in the stock market?  Who knows?  Sure there are tons of indicators you can look at, but no one will ever know for certain until after the fact.  The only people who can predict a bottom with 100% accuracy are people who are talking about the past.

But that doesn’t mean that there isn’t a ton of money to be made right now.  The best way t produce consistent gains is by looking at what is happening and factoring that into your time frame.

Here are two examples.

1.       If you are a short term trader stocks are neutral to bearish.  Knowing that there is plenty of money to be made on the short term by selling options and by playing the downside.  After all even if stocks are close to a bottom, that doesn’t mean they will just start making new highs.

2.       If you are more long term focused, hey stocks are cheap.   There are a ton of great value stocks out there that can make you a good return, if you are willing to wait for it.  If you are long term focused there is no point on trying to find the exact bottom.