Monday, October 13, 2008

Holy Cow!

In the words of the late, great Phil Rizzuto....HOLY COW!! The markets EXPLODED upward today. The DOW was up 936 points (an all-time record). It appears that the coordinated efforts that came out of the G7 meeting on Friday and from European leaders on Sunday to back up banks (2 trillion dollars in Europe) and free up the credit markets finally relieved some fears. This allowed the follow-through day to occur today in the markets after the wildly volatile day on Friday. The gap up held and it was steady buying throughout the day for 10-11% gains on most of the indices.

This DOES NOT mean it is the start of a brand new bull market. The market is only back to the point it was last Wednesday. But it certainly is promising. The healthiest thing for an intermediate term rally would actually be consolidation (a pull-back) for a couple of days. Today involved panic buying (people not wanting to miss the huge rally) just as last week was manifested by panic selling. The truth will come on a pull back. Will the sellers re-emerge? Will the bulls step up and defend the recent low? Will we put in a HIGHER low, and big the classic "stair-step" upwards? Then we will see. For now, let's call it a great day, and take it one day at a time. While the price action was bullish, this rally was way overdue. On the bearish-side, extreme governmental invention was needed to stave off disaster. The fact is, we still may be facing a pretty hard recession, and company earnings will likely be less than stellar for some time to come.

10 comments:

julie said...

Oracle indeed.

Anonymous said...

this blog is dead

Anonymous said...

I assume you are the same anonymouse that posted earlier about sexist comments. Please explain to me how anything that was said was sexist.

Anonymous said...

it was immature. take you ploitical position in a mature way. no need for the 3rd grade level cheapshot. cocoa thinks he is smart, and he is. with that being written, cocoa needs to be serious in his analysis to be taken seriously. look at the blog since the immature comment. it is slow and dead. an apology is needed. i know a number of people who refuse to post now because of the cheap diatribe.

Anonymous said...

let me add that cocoa is cool and that i still laud his intellect. he miscalculated. people are in boycott mode.

Jeanette said...

First of all, the name is Coca. Read the title.
Second of all, I am not entirely sure what you are referring to when you note a "3rd grade level cheapshot." However, please do remember that the point of the blog is for commentary and opinion of current news.
I am not sure if you know Coca personally, but I do. Coca does not "think" he is smart. He is incredibly humble. However, that being said, I can honestly say that he is the most intelligent person that I have ever met. He is balanced and is passionate about politics, the economy, sports, comedy, life and all other news worthy subjects. In fact, I asked, rather begged, him to re-start the blog after his period of abstinence because I was so interested in his view as our economy was crumbling around us--not only because I greatly respect his opinion, but also because I knew he would help me to understand the complexities of the situation. He is just like that--puts things into perspective for those of us who tend to be more concrete. I am so pleased to see he is back and better than ever!

Anonymous said...

i am happy u support cocoa. i do also think that he is intelligent. i just find it very interesting that since the immature ridicule of Gov. Palin that the blog has stalled. where are cocoa's supporters? the lack of comments from the cocoa puff crowd is alarming. silence is deafening as you know. jeanette i laud you for your excellent post.

Anonymous said...

who cares how people are commenting on this particular post. its obvious coca is venting his rage due to his personal financial blunders he has stumbled upon. hopefully coca will go back to the "bread and butter" of stock market investing, wipe his tear stained hands off and direct his laptop towards advanced charting sites. the pop he so callously blogs about is healthy since we are about to re-test the low point reached the previous market day. if we cross below this "divine" day he refers to, then coca should dis-continue wasting his time blogging on this non-profitable site and practice the line "would you like fries with that?" god speed coca, god speed

Cocameister said...

Manish you are not even making sense anymore

Anonymous said...

guess again steve, lol, mO