Stock Market Bottom 2008 (SPY, DOW, SP500, Nasdaq 100): (for reitrement account that trade at close only)

SP500, which can be traded via the SPY ETF, is in the 780 area as we write this post. If we are not in a depression, then bottom of this bear market should be in the 780 to 750 area. Consequently, one should covered in any short stock market position, shift their mindset, and start accumulating and buying dips while we are still in the bottom area.

For long time positions, the SP500, if it rebounds in a major bull leg, should go to the 11000 area, but 1200 should form a cap on any eventual such solid upmove.

We are building a position for our retirement account.

If the current levels of SP500 (780 to 750) do not hold on downside, then we might be in a depression, and not in a bear market. But we think that it is a bear market, and that we have reached the bottom area.

Conclusion: We think that retirement positions where one can trade only at market close (majority of mutual funds) should be establised at market close of today November 20, 2008.

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