Cramer is over on realmoney still pounding the table for a new bull market after the Fede ease... but he is influenced by his infamous bad call the day before the Fed ease in '98, and his inability to change direction and get onboard
however, for a dose of reality I quote from the "big picture" in today's IBD (and I apologize to those who have already read it):
"Rate cuts are good for the market, but they’re no guarantee of a bottom. In 1981 and 1960, the market headed lower even after the Fed started reducing interest rates. And in 1987 and especially 1957, the market traded sideways as the Fed eased."
and also:
"While even brand-name techs such as
Sun Microsystems, Cisco Systems and
EMC Corp. rolled over in recent months
and weeks, investors never seemed too
concerned.
Their resolute bullishness, measured by
many sentiment indicators, continues to
hang over this market. Investment
advisers, who had lost some of their
optimism in the prior two weeks,
regained a bit of bullishness.
Historically, you’ve needed a lot of bears to start a bull market."
the NDX has had these record setting rallies twice before in this decline, and yet we have not had a follow on 5% increase following the rally day... why will this time be any different?
Bob |
