SPX 800.Bear market rally or the real thing?
Don't forget that bear market rallies have the capacity to be huge.
Wikinvest Wire
Wednesday, March 18, 2009
Looky There
SPX 800.Bear market rally or the real thing?
Don't forget that bear market rallies have the capacity to be huge.
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9 comments:
Still looks like a bear to me but as a practical matter that basically just means more tactical effort and somewhat reduced return; e.g., I'm using trailing stops and have higher hedging costs so friction and/or the odds of getting stopped out of specific positions prematurely are higher. Otherwise it's the same routine; discipline is discipline.
Roger,
It's a rally any how. I have notice in the past days that the volume has not been much. As matter of fact it has been less than each succeding day. It look like the bears are buying and the public is on the side lines. Rallies allways start with bears closing their positions. However, murger deals are picking up and it is a good sine. Java for IBM.
Thanks for you blog.
Best,
Jeff from milan, italy
I also wanted to say that it looks like that there is some rotation going on as well.
Jeff from Milan
"Bearnanke" rally. Good until the Fed runs out of money and since they can always make more...
For any who missed the "60 Minutes" interview of Ben Bernanke, here is a link to the transcript:
http://tinyurl.com/dd9ct6
It should probably also be mentioned that we're coming up on a triple witching Friday and end of quarter is approaching too so, between the usual option expiry short squeezes and fund manager window dressing, there's probably some net buying pressure of a rather temporary nature going on. Not saying we couldn't be making a transition from despair to the proverbial wall of worry mind you, just say'n ...period.
And as long as we're in 'mentioning mode,' the rumor that the Fed is committing itself to quantitative easing -- buying up the long end of the bond curve to reduce yield curve steepness and make longer-term loans more affordable -- can work wonders on bond, gold and foreign asset prices (the US dollar takes it the ear) but, as Japan demonstrated, unintended consequences and unexpected outcomes come with the territory.
Ah, such interesting times.
Roger, here are my picks:
GE (General Electric)is far too solid a Company to stay at its current price of $10.32 dollars per share and I bought it Monday at 9.76/share.
Chevron (CVX) will move more once they fix the damaged pipeline in Nigeria.
Okay, have a great day and thanks again.
It certainly is frustrating seeing these big positive days and not help but think "well maybe it is over".
I'm a bit concerned that the general news that comes out is still pretty dreary as for as economic reports are concerned and nothing to justify these moves.
Until all the main causes of this mess have been sorted out I have to agree with most of you guys that this is temporary.
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