Barron’s Mike Santoli explores whether the Dow hovering around 8,000 and the S&P around 800 carries a certain significance and what this could mean.
1/26/2009
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
Faced with the choice between changing one's mind and proving that there is no need to do so, almost everyone gets busy on the proof. —John Kenneth Galbraith
Knowing that the vote over the weekend in Greece was really a referendum on Euro membership, a majority of the Greek Parliament said yes to staying. European Finance Ministers meet again on Wednesday to solidify the 2nd bailout package for Greece at the same time hopefully a deal is consummated between Greece and its creditors this week. The Greek 14.5b euro bond that matures on March 20th is up by 2 pts. The optimism that all will be completed and contained AGAIN to Greece has yields lower in Portugal, Spain and Italy. The iTraxx Financial Index is also narrower by...
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January 27th, 2009 at 5:19 pm
Keep hope alive! It’s exactly this sort of thinking that tells me the market is nowhere near a bottom. We are in the midst of an epic collapse- this should be obvious by now. How on earth can anyone think otherwise when the entire banking system is essentially bankrupt: Freddie, Fannie, AIG, Lehman, Bear, Merrill, Citi, Bank of America, Wamu, Wachovia, and on and on. Does an epic collapse stop now? at DOW 8,000? If it did, then it wouldn’t be an epic collapse- it would simply be another painful post WWII recession.
The Nov lows are now a little over two months old. We’re just about ripe for another leg downwards. Within the next month we will have broken through 800 and 8000. Hopefully we get a little rally before then from these levels so I can put my S+P short back on. The trading ranges are narrowing(lower highs and higher lows) and the resolution to this pattern should be obvious: a major break to the downside. S+P earnings at $40 this year means 600 on the S+P becomes a magnet as the year moves on.
January 27th, 2009 at 7:30 pm
going higher to what though, we can’t break 850 on the SPX.
January 28th, 2009 at 10:05 am
I was looking for an upward bound of 865 – 915. We pretty much hit the bottom of that range and, yes, I did get some futures off a tick below the overnight peak. I’ll scale into more if and when the market moves higher.