Ok we got the gap up and flat line which to be honest, is indicative of dead cat bounce behavior. But as I said before, this could be the reflexive rally that once retraced leads to the rally that gets us out from the bottom.
An interesting thing about today was that the put/call ratio closed at 1.02 showing tremendous skepticism since such high readings are normally seen when the market is down big not up big. This suggests that this bounce could still keep on going or if we drop, strongly re-inforces that a bottoming process will be in making as pessimism like this continues to rapidily build. THe market is still oversold despite this monsterous rally believe it or not. This is why I don't belive we will retest that "fat finger" low if the market starts heading down again.
I tuned into BNN a lot today to get an idea as to what the "gurus" they interviewed thought about this latest bailout. Everyone was skeptical basically saying that at best it's a temporary fix and that another crisis could still lurk. The LT wall of worry is still well in tact.
While I agree with the 'gurus' that this is just bailout just means Europe kicks the can a little longer (a little longer could mean many years), I also respect that the ECB is now willing to monetize.
ReplyDeleteIt's suicide to be bearish against a central bank that is printing money.