Wow! This is a tough market. Time to buy more?

If you have even been remotely watching the headlines, the market as measured by the major indices have all been down about 10 percent from the April 2010 highs.  This is where the mind starts playing tricks on you.  Should you sell?  Should you buy?

Logic tells you to buy when things are oversold (like they are now).  Think of it as buying something at a discount.

Here is a huge reason to stay invested or even allocate more of your money into equities.  The Hulbert NASDAQ Newsletter Sentiment Index is a measure how much "market timers" are recommending you invest in NASDAQ stocks.  A few weeks ago (May 4) they were recommending investing up to 80 percent of funds.  The current exposure reading is minus 45 percent .  You read that right.  They recommend shorting the NASDAQ with 45 percent of your funds.  This is a 125 percent shift in two weeks.

Click here to read the MarketWatch article on Yahoo! Finance.