I’m calling the top on the bottom. So many people have been calling the bottom. For instance, today non-farm payrolls were down 80k and unemployment jumped to 5.1% (both are clearly trending negatively) and yet the market is rallying (S&P500 up 11pts, Nasdaq up 26pts). This must mark the bottom!
Other bottom-marking rallies:
- Bear Stearns bankruptcy rally
- UBS $19bn writedown rally
- Fed liquidity injection rally (several)
- Doug Kass, Bear turning Bull rally
- Sovereign fund injecting enough capital to achieve solvency rally (several)
- Commodity bubble bursting rally
That’s a lot of rallies based on various factors that certainly, definitely, surely mark the bottom. Unless they don’t. Which they don’t.
Recommendation: Short the bottom. Go long the top.
More Related Research:
Um, the post about Doug Kass was a joke . . .
DJIA down 0.3% today.
Are you happy now, Juggles? YOU’VE RUINED CHRISTMAS
You go, helicopter Ben! If he keeps this up, I predict the rates will be -1% by the end of June i.e. people will actually be charged to save money.
Barry-
We know. But if we can recommend theoretical securities, then we can also discuss theoretical rallies of securities (whether real or theoretical).
Make sense?
Juggles