Not Enough Bullish Sentiment?

I keep hearing people saying "No one I know is Bullish."

Well, y’all know the wrong people. Just look at the market action, and you will see quite a bit of speculative fervor in recent days and weeks.

Over the past few few months, we have seen all manner of evidence that the bullish ardor is alive and well:

- Today’s Dow Industrials opened down  at 11,756. The dip buyers have taken it back up to nearly 11,900.

- Several 200 plus down days have seen strong end of day rallies taking markets to flat;

- Punters were buying Bear Stearns (BSC) on Friday, on the (false) assumption a bailout would prove profitible;

- This morning, Lehman (LEH) traded as low as $24.50 this morning, before being driven up to $31;

- Search your favorite websites/commentators/blogs/bobblehead: Quite a few are talking about the Fed rescue, and a "great" buying opportunity;

- It is arguable whether or not the markets may not have fully priced in all of the bad news, to wit: We have yet to trade below January’s lows. Someone is buying.

As we have noted, a short, Fed induced rally is a real possibility — but I look at it as a gift, not the beginning of a new upcycle.

Back to Ralph Waldo Emerson:  Look at what they do, not what they say . . .

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