SubscribeAll Posts Tagged With: "S&P500"
3 Stages of Bear Market Rally
In just six weeks the S&P 500 has climbed about 30% and the broader, small-cap focused Russell 2000 has soared 40%. It’s the steepest rally in more than 70 years. The bulls are off and running.
Despite it all, very few people believe this rally can last. And it’s because there are still so very few people getting in on this rally, odds are it won’t end very soon.
By this point, most commentators have declared this a bear market rally. The New York Times, Forbes, Bloomberg, and most every major media outlet have gotten on board.
Some of the world’s leading investors agree. In…
21Apr2009 | Q1 Publishing | 0 comments | ContinuedShort Sellers and Speculators Are Heroes, Not Villains
I’m expecting a lot of nasty e-mails on this column, but the truth needs to be told. Short-term traders, especially short sellers, are often blamed erroneously for manipulating stock prices, forcing them down far below their real value, and for creating crashes and general chaos on Wall Street.
In fact, short sellers have been identified as so vile by SEC Chairman Christopher Cox that he has banned short selling for some 980 publicly traded companies. Chairman Cox and other critics of the market blame short sellers for several grievances:
1. Short sellers destabilize prices in a shaky market, and in a panic…
3Oct2008 | Investment U | Comments Off | ContinuedHold the Phone: Dow Jones not off the hook yet!
The Dow Jones Industrial Average avoided a major catastrophe the other day when shares rallied back above the key 12,000 level. What may turn out to be a bullish double bottom off major support could still roll over and decline further. It’s a fragile egg that the Fed doesn’t want anyone to mess with.
The reason I’m still skeptical of the DJIA’s bounce is due to the fact the S&P100 Index (OEX) made a new low. Since the S&P could be considered a leading market indicator, we should keep our guard up, especially if the recent rally turns out to…
12Mar2008 | S. Oakes | Comments Off | ContinuedMarket’s Dead Cat Bounce is Over
Get ready for another market pullback! Just when the economic pundits thought we were out of the water, it’s time to play contrarian and take advantage of their herd mentality.
Sure, the gains in the Dow Jones Industrial Average and other indices as well appear impressive. Actually, it was more of a short-term opportunity for the bulls to ride the dead-cat bounce up just high enough to close out of their long positions with a small loss.
On the longer-term chart we’re looking at major resistance near 12,750 – just below the bearish head-and-shoulders neckline. We’ve already tested this resistance unsuccessfully…
4Feb2008 | S. Oakes | Comments Off | Continued
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