I think guy is giving right perspective. I don't see market moving much higher .Multiple reasons:
1) Assets are not priced yet and that is the main hurdle.
2) Don't assume finicals will keep going up .(How much NT and LU went up after DOTCOM Bubble)
Same will happen for C and BAC if there shareholders survive.They will trade in this range for very long.People will not give any premium to SLM,BAC,MS,C and so many junks .
3) Houses are bought ,but most of them are Foreclosure and short sales.(Asset price will not go anytime soon)
4) Just look at the ammount of Debt X,STLD ,GE ,XRX ,MGM,GM,F,LVS and so many companies have.Do you think investors are fool and they don't care about new valution of these stocks. I would count there P/E on enterprise value and not Market Cap.
All in all ,what Citi memo did is MARS act(short),but just watchout SATURN retrograde energy(long),it will take next leg down.
Donna this market is so corrupt and manipulated it's not even funny. People can say this and that about the market being oversold and this is a strong bear market rally or whatever it is but hedgefunds drove all these stocks into the ground making lots of retail investors sell and now they are having retail investors buy up these stocks like crazy on this big run only to pull the rug from underneath them once again holding the bag.
Then driving everything back down again to rince and repeat the process. I hope I am wrong and we only get little pullbacks here but this market went straight down from Dec 2007 up until about 2 weeks ago and now it just goes back straight up? I don't think so. I'm with Bang on this one and hope alot of good regular people don't get caught at the upper end of this rally if we do get a correction here.
If no correction and we are in a bullmarket now then God Bless To All still holding.
Why did the market pop up so fast at the close? They tried to fade it again today but it didnt work market held important support, so gut feel aside its a different market right here than it was a month ago. As to it doesn't just go down then come back up, thats what happens in a rally it goes up. Pada was looking at a reversal day yesterday, hc and stimpson saw the end of the world now bang and you vader all look for horrible things you have been negative for months and years now pada once in awhile happily goes long but thats about it. At some point things end, donna with whitehurst's comment from red hat go listen to that press conference business is starting to feel this is a normal recession and no longer fearful and starting to buy. Thats a pretty clear answer to me, and reason the market is turning. Durable good orders up, could be you get some cautious optimism from industrials come earnings and that will filter through the supply chain in coming quarters. But they rally doesnt last if you were all believers the longer you are skeptical the further it goes.
Abbey Joseph Cohen, Goldman's top analyst's stock pick of the year Januaury 2, was Bank of America! It proceded to get crushed and now that it's off it's lows on good news they don't like it? No wonder no one has any confidence in Wall Street. These guys are suppose to be the best and the brightest?