Overheard On The Street
Here’s what they’re saying at mid-day:
Paul Rabbitt, President,
RabbittAnalytics.com: “Our short-term opinion has improved. Stocks are in
the final declining stage. Investors are over-reacting to both good and bad news
releases. For example, the tension between China and the United States served to
drive stocks lower, although this is not an economic event. With the positive
reaction to Dell’s earnings last week, we sensed the first undertone of
willingness to accept good news in several quarters.
“This week, the emphasis will evolve away from first quarter earnings
and economic data and toward the Federal Reserve Bank. Two thirds of the US
economy is consumer-driven. Due to the colossal bear-market-caused decline in
wealth, the loss of jobs reported last week, and the PG&E bankruptcy, the
Fed now has been given ‘cover’ to cut rates. It is unlikely to wait
until the next FOMC meeting in May to stimulate the economy again.”
Frank
Gretz, Market Analyst, Shields & Co. : “Certainly many
stocks seem sold out but by now we’ve all learned that down a lot isn’t a
reason to go up even a little. Still,
there are rallies in bear markets, dead cats do bounce and in the market there
is a tendency for things to revert to the mean.
We’re due. But only time, at
least more than just one day, will tell just what this may be.
Thursday
was impressive in terms of price movement and breadth, but not in terms of
volume. Movement without volume is suspect but, again, it’s only one day.
Maybe the volume is yet to come. Thursday’s
rally was surprising in it’s timing and its size, but what comes after
Thursday holds the key. Good rallies
follow-through. Good rallies don’t give
you a comfortable entry point. Good
rallies, even in bear markets, rally long enough to make you believe.”
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