10 more reasons - Stock Market Bottomed

Treasury yields (TNX) looking good.

1. Crude extremely oversold and is about to turn around.
2. Copper led the downside rally and it is now up 3 days in a row while market kept making new lows.
3. CPC/NAMO/NYMO are all at extreme levels.
4. EUR found a bottom potentially. This is the Beast. The number of shorts on this trade are so much that a counter short-squeeze will be much larger than anyone can imagine. It will take $$$ down and equities will make new highs.
5. Extreme Pessimism all over the place.
6. VIX at levels not seen since Lehman collapse, yet the current economic structure is nowhere near that level.
7. Junk bonds have held on pretty tight all along the collapse of S&P from 1220 to near 1100. Junk is what folks sell out initially before they look out to equities.
8. Almost everyone is a $$$ long right now.
9. Look out at the blogosphere, everyone and everywhere is talking ONLY of downside action and not the other way round.
10. Positive divergences on almost all indices and stocks on almost all of the indicators that are out there.
    

Having said all of the above, risk is still there. We MUST hold 1100 and actually close above 1110 for us to maintain the bullish bias. However, regardless of this, we are pretty close to forming a bottom if we have not already formed one via the above analysis.


Good luck to everyone.