Wednesday, March 25, 2009

They called me crazy, S and P 900-1000

On Sunday, I wrote an article on this blog entitled, Stocks Don't Fight the Tape.

In the article I wrote the following,
My guess is that we are going to have one monster rally shortly. I could envision the market on the S and P 500 soaring up to 900 or 1000. That would qualify as one heck of a rally.
When I wrote that article the S and P 500 was at 768.54.

On the open yesterday, I pointed out that the S and P 500 chart indicated the market was overbought. The S and P was hitting its red line (two standard deviations above the mean). The statistical odds always favor a pullback when that happens. The other point I was making, was that, the market now has some good technical resilience. This is a necessary component before a market can get into a healthy uptrend.

Just so you won't think I am some kind of all the time bulldog, you can go read an article I wrote on this blog when I was nutsy bearish back in September--Financial Meltdown--Where there is Smoke, there is Fire. I concluded that article by saying, "cash was king". At the time, the S and P 500 was well above 1200.

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The purpose here is to keep you thinking and help you make good decisions. On occasion you will find some gems like, Don't Fight the Tape.
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Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.