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turdburglar (41.59)

Rally feels a little suspect today

Recs

14

November 08, 2011 – Comments (7)

The Italian PM is resigning and that's supposed to be good news for stocks.  I don't buy it.  I'd say get out and risk missing the huge rally that will follow the guy's departure.  Maybe when he leaves we'll find out that Italy is actually a lot better off than he's been telling us?  Well then I guess we'd better all pile into stocks because Italy is the new Germany only more generous and they'll happily bail out the other PIIGS and the problem is solved.  Or maybe not.

7 Comments – Post Your Own

#1) On November 08, 2011 at 11:04 PM, Frankydontfailme (27.30) wrote:

It's all about the spigots. Credit markets are tight, but if the EFSF can pull this leverage thing off then we're back to the races.

China's inflation is receding, so they'll print more to shore up their banks.

Inflation is already pretty high here and in England (they're actively printing).

Also, let's face it, U.S isn't going into a recession (yet) and is actually growing.

Point being, expect the bear market rally to continue.

That being said. Yeah. Once this rally ends its coming back down 

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#2) On November 09, 2011 at 12:48 AM, walt373 (99.81) wrote:

Saw ZeroHedge post this on twitter: "There are 15 more PMs in the Eurozone. 20 ES points for each means S&P closes the year about 1600" =)

Italian bond yields hitting new highs every day, yet the market keeps rising. Is it betting on the ECB caving and initating operation bazooka? What other bullish case is there?

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#3) On November 09, 2011 at 8:20 AM, FreeMarkets (92.24) wrote:

Nice call!

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#4) On November 09, 2011 at 8:56 AM, Frankydontfailme (27.30) wrote:

http://www.zerohedge.com/news/worldwide-markets-collapse-following-italian-bond-margin-hike

Ouch 

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#5) On November 09, 2011 at 3:09 PM, Frankydontfailme (27.30) wrote:

I think its oversold here, wait for the bailout rumor to poke a short-covering craze :)

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#6) On November 10, 2011 at 2:46 PM, turdburglar (41.59) wrote:

Today was a dead cat bounce.  The market has yet to adjust to talking about Italy instead of Greece.  Greece was a problem but it was limited by its size.  Italy's problems aren't going to be solved any time soon, so the market has to adapt to the new reality of having a large economy teetering on the verge of bankruptcy. I'm not a big purveyor of doom and gloom, but we have to be realistic that Italy is a big problem that wasn't expected to crop up this quickly.  A 4% selloff isn't going to get the job done.  We have more to go on this leg down.

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#7) On November 11, 2011 at 2:39 PM, armycommando (97.32) wrote:

The Dow will zig zag like late September, then will climb out to 2007 highs, then a more volatile zig zag around 14,000. I think we can of see dow at 15,000 in 2012 in best case scenario or 13,000 worst case. There's just too much pessism going around the news and media and the main street. That usually means the dow will just keep going up.

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