This reminds me of the Oct 1999 bottom, here’s why…
The swiftness with which the Equity markets moved higher Monday was
gratifying to say the least, following our sentiments that the market could
indeed turn higher in a remarkably similar fashion to the April 2005 lows with
this comment: “The S&P’s bottoming attempts of last week are reminiscent of the
April lows and if the Nasdaq can rescue the rest of the markets by leading them
higher as it so valiantly attempted to do late last week, then there is a sense
that an equally difficult and extremely volatile bottoming formation a la the
April lows, could in turn foment some equally spectacular upside”.
That upside as it turned out was unexpectedly driven by the catalytic impact
of the appointment of a new Fed Chairman, Ben Bernanke to replace Alan Greenspan
at the end of his tenure. The market’s response was positive to a well executed
and timely announcement of this new appointment.
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