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?
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.
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.
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.
they should sell advertising/sponsorship for these interventionist rallies. couldn;t hurt.. THIS RALLY IS BROUGHT TO YOU BY BUDWIESER. THIS TICKS FOR YOU.