Markets and Psychology

Last week I was talking to someone and they were talking of having sold off all of their stocks and now they can sleep at night. Another person asked me if they should sell too. I replied that my crystal ball is broken. This morning I was listening to all of the podcasts which I subscribe to and found the following two interviews.
1) The first one is from Bloomberg on the Economy. The interview is with a technical analyst Ms. Yamada who is very pessimistic.

Yamada Sees 44% of NYSE Stocks Under $10 as `Shocking' March 5 (Bloomberg)
-- Louise Yamada, managing director of Louise Yamada Technical Research
Advisors, talks with Bloomberg's Tom Keene about the U.S. stock market declines,
oil and gold prices, and Treasuries.

2) The second podcast is from market place on public radio titled "experts discuss market psychology" This is a more optimistic story.
I suggest that if you sold off everything, listen to the first story. If you are still holding on listen to the second story.