Groping for Some Stability

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Futures are swinging back and forth as markets blindly grope to find some stability.

The 1100 level is worth watching, as is the August lows. I suspect a minor bounce is somewhere in the offing, but its for fast traders only — not investors.

Advisors who have fresh capital lying around, I would put it to work, but only to match your existing defensive allocations. (i.e., if your portfolios are 30-50% equities, than you could start to scale in here).

Remember, the goal is not to bottom tick markets, but rather to own equities at advantageous valuations, using market volatility to build slowly (rather than “guess”).

We have not gotten to the point where we can discuss capitulation, but since I mentioned the August lows, lets go a step further with this thought experiment: Before this full cycle ends, will the March 2009 lows hold?

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