Monday 9/22: Biggest market rally in history?

Discussion in 'Trading' started by Specterx, Sep 19, 2008.

  1. With the ban on shorts and the government's proposed bailout, I think Monday could see a mega-rally, up as far as the circuit breakers will let it go. Everyone short will cover at whatever price they can get and everyone with a brokerage account will be scooping up stocks like mad, especially the banks. A number of people I know who virtually never trade say they're going to pile in next week.

    Granted that the government bailout is a big red hole for our government finances in the medium to long term, but in the short term this is essentially an instantaneous, $1-trillion increase in the market cap of all affected companies, plus a clean sweep of fears about continuing deterioration of mortgages, etc.

    What's the ET consensus?
  2. you're one day late
  3. I don't think so. I'd be quite surprised.
  4. nickdes


    Not going to happen, wishful thinking maybe.
  5. S2007S


    That is NOT happening.

    Rally is about 70-80% done with. I actually think you will be lucky to see any gains at all. The mega rally just happened, back to 11k we go.
  6. balda


    I think market will consolidate here before end of the year rally.

    Today's gap will be a support and if filled I'll use a stop loss.
  7. I don't know... I mean, I'm as bearish as they come, but the subprime crisis has been the engine driving stocks lower. $1 trillion is a tremendous fiscal stimulus and any fears about future Wall Street failures drop to zero. If they actually go through with this I have a hard time seeing how we go lower, unless earnings drop off a cliff.

    Consolidation for awhile is definitely in the cards though, imo.
  8. Buy the rumor. Sell the news.
  9. they should sell advertising/sponsorship for these interventionist rallies. couldn;t hurt..

  10. mxjones


    The rally started around 1:00 on Thursday. Where have you been?
    #10     Sep 21, 2008