Overheard On The Street
Here’s what they’re saying at mid-day:
Paul Desmond, President, Lowry’s
Research: “Short-term rallies should be expected from time to time. But
history shows that longer-term investors should focus on the
major trend, and view short-term rallies as additional opportunities to sell
into strength. In this way, investors will be ready to take full advantage of
the exceptional buying opportunities that eventually follow the end of
bear markets. As for now, two of our short-term momentum indicators have been at
oversold levels for more than a week, at least partially setting the stage for a
recovery rally.”
Paul
Rabbitt, President, RabbittAnalytics: “Our long-term view is
bullish.
We do not believe the bear-market declarations heard in the media
last week are particularly predictive.
Frankly, after the stock market disaster of the past year, a farmer would
say, ‘The horse is already out of the barn.’
Long-term investors should not fight the Fed.Â
Liquidity will increase driving stocks 25% in 12 months.”
“We are entering the peak of the first-quarter earnings pre-announcement
season and it is ugly. The negative
earnings pre-announcements are in technology while the energy, finance, and
health sectors are positive. Although a
relief rally is likely in the next few weeks, it may just be killed as the first-quarter earnings season grabs center stage. Since
it is unlikely the Fed cuts rates in the next two to three weeks, the focus will shift
entirely to earnings. While
pessimistic sentiment is highest in two years, it remains below extremes that have
proved significant bottoms in the past.”
Brian Belski, Fundamental Market
Strategist, U.S. Bancorp/Piper Jaffray: “After such exhaustive market
activity over the past several days, let alone the past nine to 12 months,
we are all tired of the same old capitulation stories and questions, bottom-fishing fables, and bear-market definitions and quandaries. We still believe the
market has some fundamental overhead issues to deal with over the next few weeks
that will likely prohibit an extensive move to the upside.”