Posted on 10/05/2022 1:10:15 PM PDT by fwdude
U.S. stocks kicked off the fourth quarter with sharp gains as the Dow Jones Industrial Average DJIA, -0.14% appears headed for its biggest two-day rally in more than 2½ years.
But as tempting as it might be to call a bottom in stocks, Nicholas Colas, co-founder of DataTrek Research, said Tuesday that investors should brace for more carnage in the near term as several reliable historical signs of a durable bottom are still missing from markets.
Valuations are still too high, Colas said, and although 2022 has seen immense two-way volatility in stocks, sharp moves higher historically tend to signal that more volatility might be in store for stocks.
(Excerpt) Read more at marketwatch.com ...
Quick question:
Is it so bad now, the only way is up?
Signed
Confused
Healthy markets rise slowly... these straight-up knives higher only happen during bear markets.
Dead cat bounce
The markets closed down today, so idk what this guys trying to say.
The market is so manipulated that even if Putin were to fire off a nuke the Vix would barely go above 30. They won’t allow a crash until after the midterms if they can help it.
Are you telling me the Plunge Protection Team is Partisan?
Sharp rallies - even +20% rallies - occur in bear markets
It’s called “profit taking,” when professional investors look for big dips in equity market prices in the hopes that they’ll rise in the next few days. Like a drug addict’s “fix,” he’ll crash the next morning without a quick follow up.
I haven’t figured out why investors keep thinking the FED is going to pause because the economy is shrinking. The entire FED plan during high inflation is to shrink the economy, that’s the only blunt tool they are given for the job.
These aren’t rallies, they are just short-lived trading speculation.
Yes, I believe the elites (or deep state) has fully taken over the Left and they want the Dems to remain in power. The Left is easier to manipulate than the Right.
Yes. I just looked at the 1-month, 3-month, year-to-date and past 2 years trends. Not looking good.
The Fed keeps looking for unemployment and labor numbers to pop upward. As of yet, that hasn't happened. The market will 'rally' on those 'bad numbers', expecting the fed to take the brakes off.
Bear market rallies are mainly call/put option moves. Today's movement was based on some speculation guesses on a better economy in October.
SaxxonWoods wrote: “I haven’t figured out why investors keep thinking the FED is going to pause because the economy is shrinking. The entire FED plan during high inflation is to shrink the economy, that’s the only blunt tool they are given for the job.”
My thoughts exactly. The bear market will be over when the Fed is satisfied that inflation is under control. Wishful thinking about the fed lowering rates to save the market/economy is ‘wishful thinking’.
“Valuations are still too high”
It’s been a while since I last looked but the historic P/E ratios still had not been reached (that is prices needed to be lower). The market was oversold at that point.
Gamestop to the moon. Hedgies r doomd.
I’m betting on this being a bear market rally. The question is just how far and how long the rally will be. I expect oil will continue its rally as well. Again just how far is the question. A have a couple stocks I bought at the bottom a few weeks ago and just waiting to sell at the most opportune time. I imagine I will mess up like I always do and sell either too soon or too late.
My 401k just went down for the second month in a row.
My brother encouraged me into some crypto-currency about 8 months ago before it tanked. Not a lot, just dabbling. I don’t know when it will rebound, if in my lifetime.
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