Should We Be Wary of the Dow's Big Gains?

Not to beat a dead horse, but on Tuesday, (in "Give 'Em Enough Hope...") and last week (in "Bear Market Rallies"), I noted that it is not uncommon to see eye-popping rallies in bear markets.

Even so, I do think there is something very interesting about the dates of most of the entries in a chart accompanying an article in today's Wall Street Journal about yesterday's big rally, entitled "Dow Takes Giant Leap as Bailouts Snap Gloom."

click to enlarge

And lest some visitors think it is just trash talk from a permabear to characterize yesterday's surge as a dead cat bounce, I thought it would make sense to highlight the views of knowledgeable investors who, as reported in "'Smart Money' Stays on the Sides," seem to be equally wary of the current investing environment.

Comments

[venividivici:]

Mmm a dead cat bounce of Great Depression proportions. Very impressive indeed.

2008 Oct 15 12:52 PM