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January 25, 2005
Rally? Tuesday, January 25, 2005 11:15:48
Rally or Dead Cat Bounce? This morning, after 90 minutes, the Dow is up 111 points. If it closes as a triple-digit gain, that would be the first of 2005. Do I think that's likely to happen? Well, no.
My take on this equity market bounce is that it is mostly short covering, plus some speculative bullish trades intended to try to kick start a cyclic rally.
If the Dow, by say 2:00 PM, is still up over 100 points, I might re-evaluate my belief this is a Dead Cat Bounce. My guess is that the Dow will close up about 60 points, which will not be enough to reverse the down trend that started at year-end.
The big movers here are MRK, JNJ, DIS, and INTC.
I see my monitor has reverted to delayed prices, and the intra-day charts on my system are a mess. Gremlins everywhere.
Posted by Posted by Bill Cara on January 25, 2005 11:14:38 AM | Category: Cara Today in the Market , U.S. Equities