actio-et-reactio
Balance is but a brief transition between extremes.
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Monday, July 29, 2002
Monday, 29 July
Looks of a counter rally within the largely still bearish forks.
Even so, what a move. Bullish sentiment SOARED today, if TV cheerleaders and pundits are any indication. Plenty of laughing too about "investors" not opening 401K statements, some of them on the advice of their financial advisers. Mary Farrell actually told Lou Dobbs "Happy days are here again". And mutual funds are 95% invested, ie have only 5% cash on hand for new purchases, no doubt confident that "new inflows" will serve to fuel their performance against the S&P.
Does the market really reward the masses? I remain skeptical about the lasting quality of today's "powerful rally" and its ability to lift all boats. Take a look at the iShares sectors, the sharpness of the reversals across the board, and the fact that, for the most part, despite the very dramatic gains, the net move is largely contained within the still dominant downtrend. Perhaps in a few months it will be within a dominant side-trend, at which point "bottoming" will be a more viable concept.
Labels: market-calls-dated
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
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