Was today a turn around?

Discussion in 'Trading' started by Blue_Bull, May 10, 2010.

  1. Or do you think the market will fade today's rally over the next week or two?

    I'm really divided. On one hand, the market was dropping in large part because of fears over European debt. Therefore, it stands to reason that the bail out will get the market rising again.

    On the flip side, the Euro couldn't hold its gains, and most of the Dow's gains came in the first 30 minutes or so. Moreover, I don't think the bailout really solves any problems - it just extends the time to solve them. Does the market realize this, and does the market even care? I don't know.
  2. afto


    I hope this is an exception but
    400 point gains on the Dow almost alway
    happen in bear market rallies.
    We shall see.....

  3. I'd say it's temporary euphoria. Like you said, it extends the problem to a later date, like the US borrowing from future generations. California's & Spain's debt problems will be much bigger than Greece. The question is, when will it be a problem?
  4. I really have no idea... I bought stocks I thought looked undervalued, even after today's rally.....

    It could hurt tomorrow, but again, I think I got a good deal on these stocks.... They'll make money in no time

    I say stick with high-yielders and domestic growth stocks, and you won't get hurt too bad
  5. A lot of good things have happened lately.

    - 300,000 jobs created in April

    - $1 Trillion bailout for Europe (failing countries being rescued is good news these days)

    - Excellent earnings season

    What other news can drive this market higher? If we struggle to make gains the next few days, I think we go down and fast.
  6. Fair enough. Just to play devils advocate though ... what if the bailout gets a lot of mileage - like another +400 to +500 on the Dow? Also, what if the bailout acts as an ignition that "unleashes" the built-up pressure of the jobs report and earning seasons? How likely do you think such a scenario is?
  7. NoDoji


    The action past week reminds me a lot of Fall 2008. If you're a day trader, just follow the price action, don't worry about predictions. Stay positioned with the intraday trend and you'll be catching a good wave whether it's up or down. This is trading nirvana after that stagnant mess we experienced most of the year.
  8. promagma


    I was thinking the same thing, I hope the volatility stays for awhile.
  9. "Sell in May..."
  10. noddyboy


    Looks like everyone is bearish even after this rally...
    #10     May 10, 2010