Monday, April 13, 2009

Saut: Economic Stability?

Jeff Saut, the respectful strategist at Raymond James has posted his weekly missive, see the latest version here. Last week Jeff suggested this.
His call for this week (but read the full missive) in very short:
Michael Santoli notes in this week’s Barron’s, “All this said, the market’s run has, by now, gotten ahead of every storied, momentous, bear-killing liftoff rally from history, according to Brown Brothers Harriman’s Andrew Burkly, including those of 2002, 1982, 1974, 1932 and even 1937 – ’38 being that now-familiar analog this market period still closely resembles.” Gotten ahead of itself indeed, for the 24-session, 28.6% rally has left 84.8% of the stocks in the S&P 500 above their respective 50-day moving averages and consequently very overbought. Therefore, just as we were aggressively bullish five weeks ago today on CNBC, we are now aggressively cautious, thinking the envisioned “buying stampede” is long of tooth.

Consider as a probability!

1 comment:

  1. Economic stability is really hard to achieve especially after the recession. You need to have a good resource and good management of budget.

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