Stocks Surge; DJIA Has Biggest Gain Since November

reply to post by turbokid


It sure looks like a bottom. At least a temporary one. A rally on high volume is a good indicator. Conformation will come when we begin to see higher highs and higher lows and a successful retest of the bottom.

Good Morning ladies and Gentlemen.
Well lets get ready to rumble open bell?

Originally posted by harvib
reply to post by turbokid

 

It sure looks like a bottom. At least a temporary one. A rally on high volume is a good indicator. Conformation will come when we begin to see higher highs and higher lows and a successful retest of the bottom.

you never know. however things this bad dont just turn around on a dime, we are still shedding 600,000 jobs per week, i dont think the housing market is finished with us yet either. (i think we may have some food problems this year too due to dry conditions in california but thats another discussion)
a small rally with high volume could be (and most likely is) a small bull rally coupled with short covering. most times heavy oversold markets have explosive upticks because of longs hoping for a bottom, daytraders lookin for a quick buck, and short covering.
but like you said the real test is higher highs or a retest of the low to find some support.

heres to hoping im wrong...

reply to post by turbokid


Also a 6500 bottom would make sense. It would be a standard Fibonacci correction of the gains since '87. In fact I believe I predicted that exact bottom in another thread. However I also predicted a 7200 bottom as well. . If we do break 6500 I'm calling for one more wave down for a 6300 bottom. Anything lower then that and we'll be looking at a 2700 bottom.

Edit to add: Also after a major sell off a strong rally is not unusual. After the '29 sell off concluded in '32 there was a steep rally a retest and then we never looked back. However we didn't reach the highs of the 20's again for another 20+ years. If this is the bottom we should be looking at a reaction mimicking '87 with some times spent close to the bottom before attempting to recover.

[edit on 11-3-2009 by harvib]

That poor, dead cat had to hit the ground sometime. Its been such a long fall for that feline he had to of bounced pretty high.

End of the recession? Don't make me lol.

Hope you people with anything left in the market or your 401k are selling it all off yesterday or today! Dead cat bounce is right. Today looked good until Barry opened his big mouth again.

Originally posted by MetatronCubensis
Hope you people with anything left in the market or your 401k are selling it all off yesterday or today! Dead cat bounce is right. Today looked good until Barry opened his big mouth again.

I no longer call them dead cat bounces, I call 'em dead tiger bounces because the phenomenon is way bigger than a house cat. This week we'll rock along with Ali "the village idiot" Velshi singing the tune, "The worst is over!" And the peasants rejoice!

But then, Citi's BS profit will begin to be seen for what it is, and people remember Bernanke said the same crap about the economy in April '08 and Turbo Timmy can't balance a personal check book.

Then the market will crash faster than Windows ME. Just my humble op-onion.

I actually posted a thread a few days ago about the DJIA, and where we should be headed (by looking at the numbers historically) If any bodies interested heres the link

DJIA Market Manipulation charted

In case you don't feel like reading, I don't see us bottoming (unless the numbers are fudged again) until 3900-4000 points. Drastically lower than were used to, but realistic compared to global markets, and Market fluctuation pre-90's .

anywho... If you want to invest now, you're close enough to a bottom to not feel too much of a pinch... However, I'm personally waiting untill 4K.

Also, I'm not sure if this has been pointed already, but I love how all of the apocalyptic 'the market is crashing!!' threads get all the stars and views, but when good news comes out of this mess, only 4 flags and a star for the OP?

Originally posted by Tgautier13
Also, I'm not sure if this has been pointed already, but I love how all of the apocalyptic 'the market is crashing!!' threads get all the stars and views, but when good news comes out of this mess, only 4 flags and a star for the OP?

Well, I don't want to seem like a douche, but the fact is, the Dow rising because of a leaked "internal" memo hardly qualifies as "good news". Just the facts, Citi's 'profit' is false and completely absurd.

Allow me to qualify this, if you own a business and you have 50 clients that spend 20 dollars a month for whatever product or service you offer. And you make a grand a month, but the cost of running is 1500, you can't borrow two grand from the bank each month and call that making a profit.

It's the same thing for Citi-doop. They borrowed billions from the government and now are "seeing" a profit. Horse feathers!

The other Dow mover, Bernake's pontifications at the CFR are the same words he spoke in April of 2008! "Oh we will see growth if everything goes our way!"

Yeah, good news....

reply to post by traderjack


So far the only financial that is able to post their profits is JP Morgan as they didn't took TARP money and all their earnings are profits.

So hardly the same for Citi, they took 25 billions of the bail out and who knows how much more under Obama, they claim 8 billion profits.

Anybody that can do math can tell that something doesn't add here.

Originally posted by Tgautier13
Also, I'm not sure if this has been pointed already, but I love how all of the apocalyptic 'the market is crashing!!' threads get all the stars and views, but when good news comes out of this mess, only 4 flags and a star for the OP?

well the reason I didn't star/flag the thread is because anyone who knows much about markets knows that this is nothing unusual for a bear market. Bumps like this have ALWAYS happened during bear markets. Always. So I don't find any comfort in it, just that it is proof, this bear market is following the same trend as all bear markets, just in this case, we have no clue how low it is going to go.

Originally posted by traderjack
Well, I don't want to seem like a douche, but the fact is, the Dow rising because of a leaked "internal" memo hardly qualifies as "good news". Just the facts, Citi's 'profit' is false and completely absurd.

traderjack

Memo-Schmemo. Leaked internal Sept 08 - C shares still trading around 16.00....

Pandit Memo Seeks to Rally Citi Employees

Not long after that glowing appraisal - the Treasury, Fed, and the FDIC were forced to orchestrate a massive C bailout.

C' nominal derivatives exposure = approx $37 trillion If called to perform - Citi CDS contracts on GM alone - are more than enough to bury it.

Worth keeping an eye on: SEC Form 4

GL


*04/17/2009 14:30 Q1 2009 Citigroup Inc. Earnings Release*

reply to post by coven


Thanks for the link that was informative
I havent looked lately how are we doing I'm so afraid to look

Originally posted by traderjack
Then the market will crash faster than Windows ME. Just my humble op-onion.

If C employees begin dumping this bump ahead of the stock blackout period - we'll know this 'memo' shtick was simply a set-up - as many are now speculating.

GL

Citigroup Executives Gain $2.2 Million in Stock Bets

March 12 (Bloomberg) -- Four Citigroup Inc. executives who bought the bank’s stock last week generated a $2.2 million paper profit within nine days, regulatory filings show.

The executives, including director Roberto Hernandez, benefited as the company’s stock climbed 47 percent from March 10 through yesterday’s close of markets, after Chief Executive Officer Vikram Pandit said in a memo that the bank is having the best quarter since 2007. Their buying spree was the first by bank insiders since Jan. 14, filings show.

Full Text

I posted a link to Citi' SEC Form 4 Filings yesterday to draw attention to recent insider buying activity - ahead of the leaked memo. Now it appears the media has grabbed the story.

Naturally nothing will come of this - not even after the dumping begins.


Snapshot in case the Form 4 link is down - which often seems to be the case at moments like this...

[atsimg]http://files.abovetopsecret.com/images/member/34821ac4ab06.jpg[/atsimg]

GL

reply to post by OBE1


Thanks OBE that is some thing that should not be a surprise to all.

I wonder if the money they used to was TARP money.