I'm very bullish

Very erratic and busy schedule has kept me mostly quiet in the last couple of months and I will probably keep this way for some time. Just a quick note about what I'm thinking about the market now. You may think I'm out of touch and mind by saying I'm very bullish now. Indeed, the overall sentiment is extremely depressed and almost every talking head at CNBC is discussing how the market may fall apart from here. The market trend is clearly descending and may likely continue. So why am I saying I'm very bullish? Well, it is all about the timeframe. While I'm also very bearish for the longer term, I think the near term trend will be quite bullish. You see, the market has its own mind and it rarely rewards the majority opinion. When everyone steps on the same side of the boat, it will tip over. I think we are at this time point right now. So let me make a bold prediction as a trader: I think in the next few weeks, the overall trend will be going up and S&P may likely go beyond 2000 or even close to 2030 before the short-term bull run is over.

But don't get me wrong. I don't think the market has touched its bottom yet and it may likely plunge again to test the Aug low before this correction is finally over. I think its final plummet may only start when it is over 2000 and when most of the people start to think this correction is over and starts to be quite bullish for longer term into the year end rally. This is likely the time when the market will start to punish as many investors/traders as possible.

At the moment, the market is rather oversold, which has brought down many great stocks with it. For trading purpose, buying some good but beaten down stocks may likely reward you in the short term. Actually the whole healthcare sector has been brutally beaten up so much that I think at least a short-term strong rally is very likely.

The final precautionary word: this is a very fluid and moody market at the moment and it is even very difficult for experienced traders to manage. For most of people, staying at the sidelines may be is the best advice I can give until a stable uptrend is established. You may start to pick up a few shares of good value stocks for long-term but there is a good chance you may find better prices for them in weeks ahead.