By Bruce Zaro 

I know I've been writing more frequently than usual lately, but this just does it!

Writing as a guest for Trader's Talk last week (and re-posted here, as well), I discussed the developing bottom in the global markets and how the Monday/Tuesday sell-off (prolonged for more than a day by the Fed's surprise rate cut) may have represented the low, the proverbial throwing in of the towel.

At the end of that commentary I even said, "All we need now are some bearish magazine covers and we'll be all set!"

So what do we see this week?  Business Week's cover is titled, "Market Reckoning."  And The Economist weighed in with a downer of a cover story, too.  Such things shouldn't just be brushed off; they are useful indicators of extreme pessimism in the marketplace, the type of evidence investors should rely upon to identify buying opportunities. Buy when there's blood in the streets, right?  Sounds simple, but in reality it is very hard to do, emotionally.  Indicators like these should help build confidence that the blood has already been let.

Checking the stocks on my own climax selling page yesterday, I found climax sells outnumbered climax buys on the order of 25 to 1-an astounding discrepancy.

And another interesting development occurred on Friday, a reversal up in the Bullish Percent from a deeply oversold level-14.6%. By comparison, at the important market lows of 1974, 1987, 1980, 1981, 1987, 1990, 1991, 1998 and 2002, that indicator registered an average reading of 15.7%.

Just as those were washed-out bottoms, so was the one we just witnessed. 

Economic conditions are troubling.  The news is scary. It's time to buy stocks.

*NOTE: Click here to learn about one of the managed ETF strategies I run on behalf of clients.