By: Sucker Rally or Climbing to the Peak of the Wall of Worry; Hot IPO - WSP Holdings (WH) | Self Investors

Tue, 14 Oct 2008 01:54:55 +0000

[...] So is this just a short lived suckers rally or something more? Is this the beginning of another major leg up as the market climbs a monumental wall of worry? By Investor Business Daily standards, the action on Wednesday was enough to confirm a new rally but this should not be a green light to get overly aggressive on the long side. What is critical in my mind is how we digest the gains of last week. A light sell volume pull back would go a long way in lending validity to this market surge and provide opportunity to slowly add long exposure. As I mentioned in my after market report on Wednesday, the magnitude of the rise last week into key resistance levels has allowed for a decent area to put on a few short positions as a hedge, but I think the next two weeks will be critical in determining where this market is headed over the longer haul. The government bail out plan is expected to be revealed soon and the Fed has indicated they are remaining vigilant and not afraid to take further action. [...]

Comments on: Nothing More Than An Oversold Bounce?

By: Sucker Rally or Climbing to the Peak of the Wall of Worry; Hot IPO - WSP Holdings (WH) | Self Investors