Six days ago, the Dow was at 10250, we are currently up around 10550. Six days ago cash S&P was at 1,095 and today we are around the 1,130 level. True, the Dow needs to get back to the 11000 or 12000 level to really constitute a comfortable rebound. The cash S&P needs to get to the 1200 or 1300 level to reach its old plateau.
However, considering where we were last March 2009, the rebound can only be called healthy. Along the way, the bears harped and fretted that “the rally wasn’t real” or “the rally won’t last”. etc. etc…..
But, true to from, the market has punished popular emotional opinion. That is one thing markets do repeatedly through out history. Sooner or later, they punish the general concensus opinion. Period.
Looking at some of the financial news sites today, with the Dow up slightly, and the S&P up slightly, the headlines are more along the lines of “anticipated dissappointment” that the markets are “only” up slightly. Seems like the bulls are never satisfied unless the market is rallying 5 percent every other day.
Just food for thought. The longer I write this blog, I am also becoming a student of the wires. Its amazing how one sided the reporting is. An up day of 1 point is as good as a rally of 1000 points, seemigly. And a lower settlement of 5 points is just as bad as a 500 point down move.
So my advice is to totally ignore most of the financial reporting going on out there. It can be mentally exhausting to read or listen to too much of the information-info-tainment that passes for investment related reporting.
Bottom line, today through the end of the week is totally meaningless from a trading standpoint.
Get back to the focus on Jan 4th through March 4th. Then we’ll have something to talk about.