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The "Best Traders' Market Ever" Rewards the Bulls, Again

Posted Apr 09, 2009 11:49am EDT by Aaron Task in Investing, Recession, Banking
With all the volatility - and that's sharp moves both up and down - this is "the best traders' market ever" even as it's "the most confusing and difficult market for investors," says Jon Najarian, co-founder of OptionMonster.com.

Volatility does create opportunity for traders, presuming of course they're positioned the right way. Those leaning bullish were certainly enjoying the action midday Thursday; stocks were rallying sharply thanks largely to an upside preannouncement from Wells Fargo which overshadowed disappointing same-store sales data.

The bulls have also gotten a boost from recent government action on mark to market accounting requirements and expectations the uptick rule will be restored. These were among the "simple solutions" to revive the market suggested here in late February by Najarian.

Today, Najarian declares "the worst is over" for stocks and believes the aforementioned government actions - with more perhaps to come - will help sustain the rally in the near term. But he's concerned about the looming April 15 tax deadline and wonders if earnings will be robust enough to sustain a "protracted" rally.

79 Comments

franck s
franck s - Thursday April 09, 2009 11:59AM EDT

Nothing but taxpayer money flowing into Wall Street, running the market up and down.

Yahoo! Finance User
Yahoo! Finance User - Thursday April 09, 2009 12:07PM EDT

But bad for "Buy and Hold".

Yahoo! Finance User
Yahoo! Finance User - Thursday April 09, 2009 12:11PM EDT

Traders market? More like traitors market because of Obama the Commie destroying this country with all these socialist bailouts.

James
James - Thursday April 09, 2009 12:12PM EDT

Just another suckers rally, history proves from the 70's & 80's this is just going to be a sugar fix. Market bottomed in '76 but the economy rolled over in '79 and we had a severe recession from '80-'82. The market crashed after the S & L crisis in '87-'88 but we did not go into a recession until 91-93; these two prevoius asset bubble disasters are eerily similar to this except this was like A-Rod on Steriods. This is going to be a '08 crash follwed by your typical stimulus sugar fix followed by a rollover in '11 thru '13. This doesn't begin to end for the real economy until 2013, no rush to get back into this fools gambit.

Cappo
Cappo - Thursday April 09, 2009 12:15PM EDT

I think all problems plagueing the markets are over. We could see the rally take Dow past 15K in the next couple of months and S&P past atleast 2000 by end of May. We are in a golden bull run that should last for atleast another 5-6 years.

Yahoo! Finance User
Yahoo! Finance User - Thursday April 09, 2009 12:16PM EDT

I like buying on the dips ....traders market can't wait till the divs roll in ....the future looks good if your young and you hold.

Yahoo! Finance User
Yahoo! Finance User - Thursday April 09, 2009 12:18PM EDT

it make sense, sometimes when majority thought the worst may not over the actuality is it perhaps already pass it, in contrast: when you bet for best peak point, it may also over. market was driven by news and data but many of them are fake and manipulated.

shags1_23
shags1_23 - Thursday April 09, 2009 12:19PM EDT

Fine, limit short selling. There's ways around that; it's only slightly harder than just outright short selling. Stupid Government; it won't change the QUALITY of the companies those stocks represent.

Barnes744880
Barnes744880 - Thursday April 09, 2009 12:21PM EDT

Buy and hold is still very much alive. An investor has still never lost money in the stock market if he/she has been fully invested in any 15 year period. And most of the time he/she made lots! When stocks go down, buy more. That way you will recover much more quickly. Life expectancies are going to be 80 soon, and then 85. Anyone not in stocks under 65 is only hurting themselves in the long-term.

James
James - Thursday April 09, 2009 12:22PM EDT

Beavis - You are a Butt-Head!!!!!!!!!

James
James - Thursday April 09, 2009 12:26PM EDT

Cappo - Share some of that Smoke with All (420) but your idea of a Bull Market is Dillusional at best or are you really just INSANE!!!!!!!!!

medimagingjobs
medimagingjobs - Thursday April 09, 2009 12:29PM EDT

Heeeeeeeeeeeeeeeeey (Here's) Johnny (As Ed McMahon used to say)... You are so wrong on so many points. Use common sense and logic and you can come to the conclusion that eventually all will be lost. It doen't take even an educated person to understand when factors as we are facing, (housing, homelessness, loss of jobs, FAKE money be electronically printed and SO ON)... that the inevitable result of our past successes (?) will lead to a nation,,, actually a world,,, without... The market will tank as the rest of the nation. It is all a scam to draw your money in as this is one of the last ways "they" can steal it (along with real estate) ,,, "semi"- legally. You really don't see all of this? Sometimes I read your comments and think maybe you are 100% literate and so clever to disguise your true self by portraying one who not only can't write past that of a pre-schooler... yet must be the most optimistic individual on the planet. I imagine you think if there is a revolt here in the USA, as it seems to be where we are headed, that everyone will be using "blanks",,, as well.

TomG
TomG - Thursday April 09, 2009 12:31PM EDT

The smartest guys in the country appear to be transforming Wall Street into an online casino. Gone are the boring, tedious exercises of dragging through p&l, balance sheet and cash flow statements. How exciting and simple, by comparison, to merely follow the squiggles and talking heads!

medimagingjobs
medimagingjobs - Thursday April 09, 2009 12:31PM EDT

I think Johnny Ike is into pain. Why else would this "person" (guy or girl?) remain here with so many negative comments (accurate comments though) directed to his (or her) direction?

Yahoo! Finance User
Yahoo! Finance User - Thursday April 09, 2009 12:34PM EDT

Very timely article, good predictions, keep up the thought. Help to increase the value of FWLT and BUCY so that it will come up to the Loss point, that I can sell the dogs!

Jeffrey
Jeffrey - Thursday April 09, 2009 12:35PM EDT

Yay Bull Market....again there are so many great once in a lifetime opportunities...stop complaining and get in the game! Or leave your money under your mattress and shut up!

DrSandman
DrSandman - Thursday April 09, 2009 12:35PM EDT

Hope is driving this market! Hope for a better future! I see real hard signs that things are turning around! I am seeing homes in SCAL that’s been on the market for months now having SOLD signs; I hear positive talk from common people as I shop! This is the fact the doomest and gloomiest are afraid of! People are seeing this it’s not the end of the world but a new beginning! I for one have HOPE! Take your fear and go back to China!

Ben
Ben - Thursday April 09, 2009 12:37PM EDT

Beavis, you are so correct ... these buttheads will soon be crying again after the cretin O'bumm will f* it up once again ... I figure the market may get up to 9K, unless the earnings will be bad, before it dives off the cliff to 6K ...

Yahoo! Finance User
Yahoo! Finance User - Thursday April 09, 2009 12:42PM EDT

Mr Task please do more of these articles. Also promote RIMM, a Canadian Company that has a good product but has conned the Market since 1998 and inflated the stock. See SEC Litigations for Fraud: Feb. 17th. Please get the public to believe "We are in the Money", shades of Astaire movies of 1932ish? I hope you are correct, we need the boost.

Rayster
Rayster - Thursday April 09, 2009 12:44PM EDT

You want to help the economy, legalize it! Does anyone know how much money the gov't makes off of tobacco? Think if marijuana was legal how much money in taxes that would generate. Plus, it would help unclog our judicial system.

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