New York City- Wall Street traders and strategists alike are breathing a huge sigh of relief now that the bear market of 2008 is now over.Investors may recall that the market officially closed in bear market territory on July 2.
The turn around in Thursdays holiday shortened trade signals that the bear is now officially over.
Said one trader reached on Thursday "I've never seen so much excitement at any point in my 13 months in the business."
A spokesman for another firm said his company plans to reinstate their original year end S&P 500 target of 1660, a 30% gain from here. The spokesman noted that 30% is a normal bounce off of a bear market bottom.
Ahem. AHEM.
11 comments:
LOL....yeah, and the bear was all because Bill Gates retired
and cashed in his 401k.
Have a happy holiday Roger...
to you and your wife and "furry"
family.
thanx :-)
I wonder what make them think this bear market is over?! What signal?! Weekly chart of $SPX still look like sh**... and candlestick of this week look like more down side to come... no hammer, no doji, no anything...
Talk about a 20% decline defining a bear market, here is an unbelievable chart from Seeking Alpha: the Dow priced in euros, 2001 to present. Drop from approximately 13,000 to approximately 7,200. Here is the link:
http://seekingalpha.com/article/83758-the-dow-in-euros?source=yahoo
But, what does it mean? JCarr
I think the better question is how much does it matter?
We know what it means in terms of the dollar. Anyone investing enough in foreign stocks, if they got the country selection right and had emerging, more than offset the dow cutting in half in euro terms.
I won't out-debate anyone on this but I do not think the dow priced in such and such offers much beyond intellectual curiosity.
Roger - I am interested in your thoughts on initially investing a large sum of money in a stock market environment like this. Would you suggest dollar cost averaging in, investing all at once, or waiting until demand for equities is healthier (such as when the S&P moves above the 200 day MA? Your thoughts would be appreciated.
forget "a stock market environment like this" for a moment. that is not really a winnable question. buy in on a given day and a month later the market is either up or it is down. go in in stages and it is the same thing you either come out ahead or you don't--flip of the coin.
any new accounts that come in, i quickly try to get them close to where existing clients are--equity wise.
No hammer! No doji! Oh my!
So even though demand is unhealthy and the "average" bear market could be another 10% down, you would not recommend trying to time the market with an initial large purchase?
new account?!?!
diversify, diversify, diversify, diversify. did i say diversify?
and maintain a large portion of cash (for now) for more opportunity that comes down the road.
write cover calls and save the premium on any holdings you should jump into.
Now it is russian roulette for which investments to make. That is the difficult part.
How many rounds were in that revolver?
remember the deer hunter? (movie)
:)
I can't wait to see the consumer confidence report after enough
people see this...Yikes!!!
http://tinyurl.com/5l48bh
Did any one see Get Smart?
How about Dow 15,000?
Would you believe 9,000?
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