Zeev: Looks like the market can fool us all. Look at Ralph Bloch's in-your-face comment from July 2nd:
Monday 7/2
Surprise, surprise, we're starting to hear about indications that the economy may be hitting bottom. The
technicals called the low perfectly in early April as the market ran from 9100 to 11400 in anticipation of
exactly what now seems to be happening - let's pity all those poor souls whose mantra was "but the
fundamentals don't support the rally." Let's hope they've learned a lesson. A split market, as the DJI rose
136 by noon and closed up 91 points, while NASDAQ lost 12 points and MSFT fell 2-1/2 points, which
cast a small pall over the technology stocks. The screaming plus of the day was MMM issuing a "warning" -
it opened 4 lower and ended up 3-1/8, and that's as bullish as it gets for the overall market. This was the
clue last January that the market was ready to rally as it ran from 10400 to 11100. A negative was a poor
Advance/Decline reading, which posted only 130 net plus - Friday, for example, the DJI dropped 64 points,
and there were 832 net plus. So, for two days, the DJI rose 23 points and posted 960 net advances - not too
shabby! The broader-based S&P rose 12-1/4 (1%), which was, of course, much stronger than the DJI. |
