October 16, 2011
Weekly Market Outlook
By Keith Schneider
by Keith Schneider
Never mind the Occupy Wall Street protesters; the real inhabitant of Wall Street is the bull. Here he is telling the world that Wall Street is alive and you can “kiss my—“ well you get the point. Out with the old adage “buy the rumor, sell the news” and in with the new “buy the demonstration, sell the revolution”. Taking a cue from the Egyptian Spring, the initial selloff was a buy opportunity whilst the actual revolution, a big sell signal. The Cairo Bourse has dropped almost 50%, since the short lived rally right after the demonstrators left Tahir Square.
Turning to home, the recent move is historic and breathtaking, with NASDAQ 100 rallying over 16% from the lows set earlier this month.
No to undermine the legitimate gripes of the protestors, I for one hope they stick around and keep this rally alive. Many traders (particularly those employed by big banks) were rewarded for lousy trading. They leveraged up, lost tons of our money and then received lofty bonuses.
For the past several months it was hard to find a bull on any continent. Sovereign debt defaults in Europe, the weak recovery and downgrade in the US, a potential real estate bubble in China, all combined with much of the Middle East in revolution has made a strong case for disaster. After what looked like a market on the edge of a precipice, has now turned out to be the impetus for new chapters for the technical analysis textbooks. Even those not typically predisposed to chart reading, should have a gander at this week’s video.
Have a great Weekend!
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