Overheard On The Street
Here’s what they’re saying at mid-day:
Paul Rabbitt, President,
RabbittAnalytics.com: “Our regression market forecasts are positive.
Sentiment is most pessimistic (a contrarian positive) since October 1998,
monetary forces are most positive in years, technically equities have managed to
break the downward momentum and are in a trading rally. We expect some upside
follow-through. The market has finally
managed to swallow the plethora of earnings downgrades and is attempting to look
forward six to nine months in the future when Fed easing will have begun to
reverse the gloomy earnings we currently endure.
We are encouraged to see stocks rise on bad news such as Motorola, which
gained on the week after reporting a wider loss than expected and its first
quarterly loss in 16 years.”
Brian Belski, Fundamental Market
Strategist, U.S. Bancorp/Piper Jaffray: “The stock market’s upside success
of the past 5 to 6 trading days has produced increased banter of a ‘Spring
Rally.’ While we are not one to look a gift horse in the mouth, especially
considering the 14% Nasdaq gain last week, 5 to 6 trading days of prowess does
not exactly wipe away nearly four quarters of pain. After all, the market has
exhibited multiple relief rallies over the past 9 to 12 months that were unable
to muster enough validity to turn the tide.”
Paul Desmond, President, Lowrey’s
Reports: “Our last conventional short-term buy signal, registered on April
5, is still in force. Even the 14-day stochastic indicators, for the S&P 500
and the Nasdaq Comp, are still in positive trends. There are no signs the
current rally is about to fail. But several signs of an over-extended market
have emerged. For example, the S&P 500 has risen to its upper 3% envelope,
the percentage of stocks above their 10-day moving averages shows signs of
stalling near the overbought zone at 75%, and the 14-day stochastic indicator
for the S&P 500 has risen above 75%, reflecting an overbought
condition.”