"Lack of fear can be a relative term," says Chris Johnson, who focuses on both technical analyst and contrary investing, and believes we have not yet seen enough pessimism to justify a long-term market bottom. However, he does see selected opportunities, such as Costco (NASDAQ: COST) in the retail space.

The editor of Insightful Investor explains, "Given the situation presented to investors over the past month, we should almost see them crying in the streets and selling everything in their portfolios. But that's not the case, as we continue to witness optimism among the key sentiment gauges."

The advisor continues, "What does this mean? Well, it means that the worst is likely yet to come. We're still waiting for a sign that investors are truly capitulating instead of hoping that the economy will miss a recession."

Johson suggests, "Capitulation ... true capitulation, that is ... is combined of two things -- massive selling accompanied by extremely high levels of pessimism. One without the other can identify a short-term buying opportunity. But given where the market is right now, a true bottom is not likely to be drawn until both of these events happen at the same time."

He concludes, "Investors would be wiser to hold their cash until the current volatility hits a crescendo." Despite his cautiousness, he still is finding certain "contrary" opportunities including Costco. He explains, "While many companies in the retail sector have taken a hit after the holiday season, a few stand out as heavyweight contenders; one such company is Costco Wholesale.

He adds, "Slow and steady has been the plan for COST, as their sales figures continue to outpace many in the retail group. The company has done a great job of positioning itself as 'the place' to shop for businesses and households when visiting the warehouse scene. As a result, COST's price has remained a steady performer."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.