Treasury to Buy Troubled Assets…Again; Stocks Jump
Monday, March 23, 2009 20:24The once over-sold stock market has rallied for the past couple of weeks. This rally, though fresh in all of our minds, is not much different in time, or magnitude, than the previous upward corrections throughout this bear market.
This rally began with the profitability assurances of Citigroup’s CEO, a repeat of last years “Assurances” (which were lies) and will soon end with the announcement of the proposed purchase of troubled assets by the Treasury Secretary, another repeat of 2008.
Are we just gullible? I don’t think so. My argument, contrary to the main stream media, is that both of the above mentioned are NON events as far as stock prices go. The market was deeply oversold and short term momentum turned up. Period. If the opposite was true, the market would have dropped and the media would have found a reason for that too – bet on it.
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PD says:
March 24th, 2009 at 3:42 am
Finally, a voice of reason. It’s been less than 24 hours since the plan was announced and I already have numerous reports/stories on my Bloomberg screens with analysts calling the beginning of a new bull market. A touch premature? I would say so.
jg says:
March 24th, 2009 at 8:29 am
Very nice graph and annotations; makes sense.
Me, I am holding short.
tradeking says:
March 24th, 2009 at 2:00 pm
GOOD CALL!