When is it safe to go back in the water?; When has the market stabilized?

Some of the eternal and unsolved mysteries----which are precisely the ones that The Evansville Observer specializes in----are when is it safe to re-enter the water after a shark attack, and also when is it safe to re-invest in a stock market after a plunge?

I do not have the answer.

That being said, some technical analysts many years ago have instructed that one look at both the advance/ decline numbers as well as the hi/ low numbers. These can be found in the yahoo finance section under index and actives.

If one takes the WEEKLY numbers as published in Barrons newspaper ( sold at the Citco at 51 and 14 in Janesville, and plot the numbers---when BOTH index's go positive then one might consider the market to be stabilized enough to re-enter.

Because one is looking at the cumulative weekly numbers, one is pretty conservative and one does not get caught up in the short up and down or "false rallies" as they are called.

Click on the post for an article from Yahoo on the market on Friday. If you get the Barrons on Saturday, and look at the graphs, you can judge for youself where we are at.