Bottom Forming?

So now that we've had six straight weeks of losses is it time to sell or buy? We just bought on Friday, and here are a couple of reasons why.

First of all, one of our proprietary indicators flashed that a bottom was forming. Then we saw this article. Whenever major figures start saying time to sell we strongly consider buying. And finally, as this article points out, what we're seeing is selling without a huge spike in volatility. That fact would seem to indicate that there's not a whole lot of conviction behind the selling.

All of that being said, there are a few caveats here. Nobody really knows what the end of QE2 means for the markets. Nobody's really sure that there won't be a QE3. Our overall disposition is to be bearish during the summer months. And we believe that our indicators are firing a little early, so we probably have a bit more downside to go. However, we'd rather be early than late to this party, and we firmly believe a short-term bottom is forming.