So, was that the bottom already?

Jorgé's picture
Rank: Neanderthal | 2,124

Bulls around the world should be pretty stoked today as stocks continued Friday's gains. The DOW is up another 2%, the S&P up another 3%, and the NASDAQ gained another 3% as well. Europe did even better with Greece surprising 7% to the upside.

It kinda begs the question though; are the bulls finally having their way? Or is this rally another short? With a long way to go before we hit the bottom?

For the past few months it seemed like that the market was looking for any reason to rally, but even after today's session, MKM partners think there's still a lot of room for the bears to grow and I tend to agree. While I'm bullish equities over the next few years I feel like the recent rally doesn't have enough behind it to climb the proverbial wall of fear. Volume was barely a fifth of the daily average and nothing has really changed fundamentally as far as our economic outlook is concerned so I'm not sure where all this newfound optimism is coming from.

What do you think monkeys? Are you bullish or bearish after today?

Comments (19)

Aug 29, 2011

I saw a lot of short covering today...

Aug 29, 2011

nothing really changed...still as many deficits, still as many debt problems, still no jobs and housing is still crap.

The stock market will move up and down just like it always does, but personally i think it will head down again soon--and maybe even lower.

Also, with more politics on the horizon look for increased speculation.

Do what you want not what you can!

Aug 29, 2011

Definitely like them ladies in that video

Aug 29, 2011

Market will go down over coming months as weak data continues to come out. Eventually Ben will do QE3.

Aug 29, 2011
alexpasch:

Market will go down over coming months as weak data continues to come out. Eventually Ben will do QE3.

Can you really rely on QE3 happening when 3 members of the FOMC have stated that further monetary easing isn't necessary?

Aug 29, 2011
freeweezy123:
alexpasch:

Market will go down over coming months as weak data continues to come out. Eventually Ben will do QE3.

Can you really rely on QE3 happening when 3 members of the FOMC have stated that further monetary easing isn't necessary?

Until deflation becomes a real concern, we probably will not see a QE3.

Aug 29, 2011

Hurricane Irene didn't totally destroy the east coast like the media was making it out to so you see some green on the screen.

Aug 29, 2011

Like you said, volume was very low, as it has been on most up days. Not sure if there is any reason to expect sustained buying in the short term. I think we still need to head quite a bit lower or get some consistent positive data before PMs prefer equities to cash/treasuries.

Aug 29, 2011

Volume sets the trend. This is just some consolidation.

Aug 29, 2011
<span class=keyword_link><a href=//www.wallstreetoasis.com/finance-dictionary/what-is... rel=nofollow>LIBOR</a></span>:

Volume sets the trend. This is just some consolidation.

This

Aug 29, 2011

That Katie girl looks as if she just got a stroke...

Aug 29, 2011

We also came off from the highs on nothing new : we knew the us was debt ridden and Europe was fucked, but then there was a tidal wAve of selling with massive three figure down days that we haven't seen for years that were just massive bleeding out. If you're bullish for equities over the next few years I don't nbow why the hell you wouldn't have loaded up or at least faded into the move off such a hard sell off.

Aug 30, 2011

I'm just bearish on the NFP for Friday. If you look at the Philly Fed numbers (which were abysmal) you'd be worried too. That will kill the market, but we might see a brief run up until then.

Reality hits you hard, bro...

Aug 30, 2011

Hangseng, Nikkei, Kospi are all pretty much just moving sideways lately but I'm bearish too for the short run.

Aug 30, 2011

A bounce was to be expected. It'll probably be a while before we see a solid trend of positive numbers to underpin a lasting move upwards.

Aug 30, 2011

things are not overly pessimistic enough for this to be the bottom i guess..

Aug 30, 2011

This is one of those things that won't become blatantly obvious until much later, I'm afraid. You can never tell whether people are acting/selling rationally or not, which is why it's so difficult to call the bottom. You might as well flip a coin.

Metal. Music. Life. www.headofmetal.com

Aug 30, 2011

I still believe we have a ways to go. The situation in Europe is still unraveling. If any of the larger nations in the euro zone run into as much trouble as Greece, then we are far from the bottom.

Aug 30, 2011
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