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TIME to BUY: Donald Luskin of TrendMacro.com

Fred Goodman, who publishes the best technical analysis of the stock market I've ever seen (find it on my Web site), confirms it. He tells me the American Association of Individual Investors sentiment poll now shows its members about as bearish as they were back in February 2003, just before the panic bottom in March that gave birth to the current bull market.
What's so unique about this moment of fear, though, is that it's hardly reflected at all in the CBOE Volatility Index, the so-called "fear index" that tracks the premiums in listed index options. It's moved up a bit in the past couple of days, but for months it's been stuck at historically low levels. You can see it in the amazingly narrow trading range in which stocks have been confined for the last six months. So moods may be swinging, but stock prices really aren't.
We are near a short term bottom, but the market is going to start testing further support in the interim quarters - Oscar

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