WOW any bad news is now shrugged off as good news and any good news is now great news! I've been bearish for sometime and it really doesn't work. Go with the crowd. The only move this mkt knows is up. Throwing in the towel. Maybe I'll open a landscaping business.
You should have covered your short yesterday (assuming you were) The market has been pricing in negative fed news for quite awhile so it isnt too surprising that the markets rebounded as they are now. A possible quarter point increase isnt the end of the world.
The market knows the fed wont do anything but talk talk talk, the fed is waiting for some more manufactured crises other than sub prime, they need more cover, because the upcoming inflation data is going thru the roof. Hurry up wall street, create some more cover for the fed hurry time is running out.
It's a curious thing, but when bearish sentiment has been running high for quite some while and most of the bears are either in cash or have short positions (which keep getting hammered) and essentially the mainstream sellers have dissappeared or gone in cognito, there are just the permabulls left to trade among themselves. And they want to buy buy buy. The result, the market appears irrational and continues to climb. I suppose this will continue until the permabulls flip on the light and see they are the only ones in the room. In any case, as someone said: " the markets can remain irrational much longer than you can remain solvent."
You're right. While the indices are overvalued, things are NOTHING like 1999-2000. Not even in the same ballpark. don't know how the OP came up with the analogy