“Whenever a well-known bearish analyst is interviewed [Cover story] in the financial press it usually coincides with an important near-term market bottom.”
– Clif Droke (Clifdroke.com, 11/15/04)
When it comes to bear markets, selling the rumor and buying the news is a counter intuitive and frustrating proposition for novice traders. The market action explains the news, the opposite of what many investors believe when they make their decisions. Personally, I like to avoid stories and focus on price action or some other objectively quantifiable phenomena, all in an effort to shield my mind from the emotional transference that news can cause.