Ask Colin

BEAR MARKET STRATEGY

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1. Which Dow phase are we currently in (early 2001) and when are we likely to see an entry point?
2. Should we keep watching the charts in a bear market?
3. The Dow and the All Ords have proved much more resilient than I expected. I've been mostly out of the market for a year. At what point in time does the recent upward run (to first week of May 2001) in the Dow remain only a bear correction and not a continuation of the Bull Run - when the Dow goes to a new high?
4. It seems that the bull run has all but ended (early January 2001). Should I be trying to trade the bear market, or is there no alternative to waiting for a new bull market?
5. I have been making a transition from buying mutual funds on a long term basis to buying stocks on a short term basis and selling short a little bit. I assume we are now (December 2000) in the phase 2 of a bear market. Would you advise me to sell my mutual funds now and do you have any other recommendations to help me with my transition?