Today's strong close could be an indication that the drag on the markets is at the bottom.....Today was a day when shorty had to cover and reason for a big rise, also may spell that the bear market is at an end..Usually the markets turn around after a second dip and that happened this past week.
The overall decline started from a high of 2002 at 1919 on 3-11 and was tested briefly on 4-01 only to see 1834 with another test on 4-17 at 1829...A major selloff occurred on 4-17 1829, to 5-07 1589 and was probably due to high anxiety of terrorist attacks in Israel and the alarming alerts here at home..
The major shift came after a brief climb from 5-07 to 5-16 when Nasdaq was at 1745 and then with irregularities in accountings of Corporate America and investors feeling that they have been undermind from brokers and analysts took to the sidelines...All this time the shorts were playing their best game with much results....Now, today with the greatest gains in some time, the shorts were covering and appears the bears have finally been taken over by the bulls.....The investor sentiment is still with much disgust,but the opportunities of making real money is a fact that many will come back in and move this market higher.....
We are a long way from the high of 1919,but the next 60 days will certainly allow many to realize that this market is a bountiful basket of excellent buying opportunities at historical lows and the correction,although turned many into nervous wrecks,had to be exploited...
The public acceptance on the threat of terrorism is very real,but most are in the realization that it isn't going to upset their daily life's....Investors main concern is the fallout in corporate America and if another ball drops from a major company of accounting wrong doing,this will have a major impact and send this market lower than the lows recently experienced....Most companies are now coming to realize that bad news better be sent out first rather than have it being dug up by the news or sorts of media types...Most recently was Motorola with their accounting problems and Xerox that got little public attention.So maybe the worst is over and investors can feel once again that stocks,although won't command the over inflated P/Es of the past, are still considered an excellent vehicle towards augmenting ones portfolio overall.
Bottom line is that investors will be lookinig for strong E/R in companies with a simple explaination on filings and less on fluff and puff....Expect new accounting guidelines to come out of Washington and now there probably be some jail time for some former corporate leaders and new laws that spell orange jumpsuits if you screwup and mislead investors....Certainly is about time....
Have a good weekend...
ET
The overall decline started from a high of 2002 at 1919 on 3-11 and was tested briefly on 4-01 only to see 1834 with another test on 4-17 at 1829...A major selloff occurred on 4-17 1829, to 5-07 1589 and was probably due to high anxiety of terrorist attacks in Israel and the alarming alerts here at home..
The major shift came after a brief climb from 5-07 to 5-16 when Nasdaq was at 1745 and then with irregularities in accountings of Corporate America and investors feeling that they have been undermind from brokers and analysts took to the sidelines...All this time the shorts were playing their best game with much results....Now, today with the greatest gains in some time, the shorts were covering and appears the bears have finally been taken over by the bulls.....The investor sentiment is still with much disgust,but the opportunities of making real money is a fact that many will come back in and move this market higher.....
We are a long way from the high of 1919,but the next 60 days will certainly allow many to realize that this market is a bountiful basket of excellent buying opportunities at historical lows and the correction,although turned many into nervous wrecks,had to be exploited...
The public acceptance on the threat of terrorism is very real,but most are in the realization that it isn't going to upset their daily life's....Investors main concern is the fallout in corporate America and if another ball drops from a major company of accounting wrong doing,this will have a major impact and send this market lower than the lows recently experienced....Most companies are now coming to realize that bad news better be sent out first rather than have it being dug up by the news or sorts of media types...Most recently was Motorola with their accounting problems and Xerox that got little public attention.So maybe the worst is over and investors can feel once again that stocks,although won't command the over inflated P/Es of the past, are still considered an excellent vehicle towards augmenting ones portfolio overall.
Bottom line is that investors will be lookinig for strong E/R in companies with a simple explaination on filings and less on fluff and puff....Expect new accounting guidelines to come out of Washington and now there probably be some jail time for some former corporate leaders and new laws that spell orange jumpsuits if you screwup and mislead investors....Certainly is about time....
Have a good weekend...
ET
