- There's a saying in sports that you shouldn't get too high after a win or too low after a loss. I think this also applies to the stock market. But... Wow. What a day.
- Barry Ritholtz chimes in on the back-to-back market wins, and adds "The wild swings in the markets, +/- 2%, with violent up 200 or 300 point days don't typically come in healthy Bull markets -- these spasms are symbolic of Bear markets."
- Ah, the one-day wonder. And to keep a level head, we saw one of those about 10 days ago or so. Remember? Things went south after that.
- Yeah, but... We sometimes see wild swings in both directions at inflection points in the market. That is, when the market is about to change direction. Monday's close was also 1 point above the closing low in August. So a big rally off of a "retest" is also bullish.
- I think you can paint it however you like and find examples in history to support your cause. So I suppose I should amend the ending of the previous paragraph to say that it's "sometimes bullish." LOL.
- I remain bullish and 100% long here. I think that the consensus of us being in a recession or one imminently on the horizon is extremely loud at this point. The bad news on TV and the news media is overwhelming. So this means that we already know about it. We know housing is in a recession. We know there are bad loans out there. We know financial companies aren't going to collect on some of these. But that's why C has ALREADY dropped from the $50's to $30.
- Today was fun if you're a bull. If one was a bear and rushed in to shorts on Monday, then things aren't going well so far. These bears are stuck holding and hoping that their shorts make money. Or maybe they'll be happy just to get out at break-even. But the bears may be feeling a bit trapped right now.
- And then you have the folks on the sidelines who never know what to do. When the SP500 was at 1560, they're looking for a dip so that they can buy the leaders. When the dip comes, then they're waiting for a rally so they can go short the weak stocks. Then a rally comes and lather, rinse, repeat. Well, at least money markets are paying a steady 4% or so to these always-waiting bystanders.
- Oh, and one Seasonal Investor still hasn't given a buy signal to let folks know that the favorable season has begun. (Sy Harding is still waiting (as of his 11/22 blog entry). The MACD is close on the SP500, Sy!
- Helio? Sheeez. Mel B (Scarey Spice) was better.
