Thursday, February 26, 2009
Hey Mr. Market watch me pull this bunny ...
If we close under 740 on the S&P it triggers a buy signal.
Doesn't mean you buy at 739, it just means that an intermediate bottom is coming and its' time to do a Radar O'Reilly ... wait for it.
Historically you would look for the whoosh down and try to catch the bottom of that V.
However, this would most probably only be an intermediate bottom because usually bear markets bottom with a whimper not a bang.
I mentioned the other day that 'After FAS 157, after uptick, after overpaying for the toxic assets, the bullishtness crowd ain't got nothin' left.'
Well, they floated the repeal of FAS 157 a couple of days ago, Bernanke floated reviving the uptick rule yesterday, the headlines yesterday suggested that the stress tests wouldn't be too tough and today the commentary is that there will be hundreds of billions of more scrip going to the banksters.
The fly in the Nancy Capitalist ointment?
Goldie came out and said that S&P earnings are going to be $40.
The longer the Federales wait to pull one of the bunnies out of the hat as opposed to just teasing the lower we go, but when the magic show starts this feline is going to ramp.