March 23 (Bloomberg) -- U.S. stocks rallied, capping the market’s steepest two-week gain since 1938, as investors speculated the Obama administration’s plan to rid banks of toxic assets will spur growth and investor Mark Mobius said a new bull market has begun.
S&P 500 low 3/9/09 was 676.53. Today closed at 822.92, increase of 21.6%.
This action is just what I have been expecting. It would be really nice to see strong follow through to really wash the shorts out of the market.
Here is what I wrote way back in January
Market has moved up more than 20% from lows. But people refuse to call it a bull market.What gives?Just like the recession.Definitions don't count. It is all fuzzy stuff decided by various shadowy figures.I actually measure a 24% increase in the S&P 500 just looking at closing prices. If you look at absolute highs and lows the move has been 26% from the bottom.What number would be a new bear?S&P 500 close below 747.8 would be a new bear market.Today we closed at 906.65, pretty far above 747.8.A correction could take us to 841
So, the low on 3/9/09 of 676.53 was almost 10% below the old November low. But was it really a new low? Bull and bear markets are coming fast and furious. Up and down 20% every few months. Is this time different?
I hope so.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment