Discussion in 'Wall St. News' started by crgarcia, Mar 12, 2009.
Maybe investors hope to get some funds back (maybe all trough a bailout?).
I think this rally has been based on the following:
1. Stocks such as C, WFC, BAC, etc. have been down 80-95% and yet are now saying they are earning money, don't need more federal help, etc. Also, GM said they don't need more help. I'm not saying they are doing great, but considering they were priced for BK, short term bounce at least could be expected.
2. Talk of uptick rule being re-instated and Mark-2-Market at least being removed temp. or modified to not kill the banks and other financials. Remember that this would also help almost all companies as financing would become easier.
3. Market was clearly in seriously oversold short-term condition.
4. Just as the average Joe on the street was buying tech stocks on rumors in late '99, the average Joe who has never shorted or bought puts before has been starting to get in on the short side after hearing about all the money that can be made going short.
5. While shorts will say channels like CNBC are still bullish, etc. - I have heard no-one willing to predict anything like the dow getting back to 10,000 by years end recently. Even bulls are saying to be very, very cautious in this market.
6. Based on how negative media reports of the ecomomy have been, you would expect people who have died of starvation and being homeless to be piling up in the streets across America, but it isn't happening. Actually, quite the opposite - every hockey game is sold out, traffic is as bad as ever, etc. People are starting to realize they've been hookwinked by the media.
I think it was because Doug Allen hasn't posted on ET since March 7th.
People are also starting to realize they've been screwed by the banking cabal.
Re: the OP - remember the perp walks at the 02/03 bottom?
They need more than just Madoff tho. A month or two of constant perp walks and specials on CNBS would be a good indicator.
rally caused by insider info you aren't going to get until the rally ends.
Financial Fraud Is Focus of Attack by Prosecutors
Separate names with a comma.