More POSITIVE SIGNS for the market …

More positive signs show up for the market …

Could mean that we have seen at least an intermediate BOTTOM.

1. We confirmed and held the January low.
2. A BIG name (Bear Stearns) went belly up and we still held up. This often marks the turning point.
3. Lehman stock price was able … after virtually halfing yesterday … to regain ALL(!!!) of its losses.
4. Earnings estimates for the financial sector seem to be TOO LOW!!!
5. FED opened up its doors for investment banks as well, making a “2nd Bear Stearns” highly unlikely.
6. Most sentiment measures show RECORD PESSIMISM.
7. The Dollar fall makes US investments more attractive and creates windfall profits for exporters.
8. Interest rates went so low now, that every model has equities looking CHEAP … MONSTERCHEAP.
9. As housing seems to stabilize for the time being … monthly negative rates should read “better”.
10. As commodities are starting to struggle, this should help inflation later in the year.

AND

11. Goldman yesterday(!!!) replaced BIG BULL Abby Joeseph Cohen with David Kostin …

They scrapped her 2008 yearend forecast of 1675 in the S&P with the following:

Kostin expects the benchmark index for U.S. stocks to fall 10 percent to 1,160(!!!) in the “near term”
before rebounding to 1,380 by year’s end.

They killed the bull … long live the bull???

But please remember: We are still walking on thin ice …

Watch your step and your STOPS

Tags: Goldman, Lehman, outlook, sentiment

This entry was posted on Dienstag, März 18th, 2008 at 18:35 and is filed under FDAX. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.