Mr. Ritholtz is humble* about the timing of this post (12:30 p.m. Friday).
From The Big Picture:
Today, we look at specific data and charts that can provide some insight as to how extreme these present levels are. All these suggest to us that we are increasingly close to a bottom that can be purchased for an upside trade of 20-30% from these levels.
NOTE: We scale in over time, in 10% increments, and recognize that the bottoming process can take several months to several quarters to complete. Hence, slowly buying in is the key.
1. Relative Strength Indicator, SPX, 1928-2008
Ever since the beginning of the S&P500, the RSI's monthly indicator has only dropped below 30 on four occasions: 1929, 1973, 2002, and 2008.
All 3 prior instances were very close to lows....MORE
This looks awfully familiar:
Was our Friday noon Buy call timely, or is there more downside acomin' ?
What say ye?