Remember this thread title in the months to come. The permabulls are orgiastically calling today the market bottom (I don't know whether on fundamental or technical terms, but anyways...). We haven't had capitulation and we haven't bottomed as there's still too much positive sentiment, there has not been a double v, and most importantly, there is still WAY too much uncertainty about writedowns, the toxicity of balance sheets, and forward earnings growth. Everyone here who is investing/trading their own money, and thus very likely to protect it from unnecessary risk, knows that the Mr. Market has a distaste for uncertainty above all other things. Things may begin to look attractive at these levels, only because they're cheaper than they were, in nominal terms, months ago.... Honey Trap.
It's not about tomorrow. It's about next week, next month.... If we drop 300 points tomorrow, I'll say the same thing.
exactly. The trend is downwards. Lower highs and bigger lows each time the market bounces up. Thats a recipe for a downward trend. Even if the market rallies tommorow with a full percentage point rate cut, its a temporary rally, imo.