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Ten Checkpoints Before Market Liftoff

By David Edwards

About this article:
Market bottom or bear trap? Should investors start moving cash back into the market or wait till lower lows later this year? At my firm, we've been accumulating cash since March. I'm itching to buy the stocks on our preferred list, many of which are trading at multiyear lows, but I'm looking to see confirmation that the three monster rallies of the past two weeks are more than short-covering. Here are 10 parameters I'm tracking before I jump back in: Economic Environment 1. First Call's analysis of forward earnings remains bullish. First Call is a market data service that aggregates analysts' reports on individual companies, industry sectors and the overall S&P 500. First Call provides a weekly summary of this information, which I check every Monday morning. In aggregate, the S&P 500 is expected to grow 4.3% in 2002 and 19% in 2003 after falling 17.3% in 2001....

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