Igor Goes All In On Strong "Fibbing at C" Chart Pattern

The rebound in the S&P 500 from 665 is a bullish sign to traders who base predictions on so-called Fibonacci patterns in price charts. The index has risen 9 percent since sinking to 666.79 on March 6. The low was within 0.3 percent of 665, a level at which the benchmark index would give up 61.8 percent of the 25-year rally beginning in 1982. [1]

I grabbed the above quote just before BL evaporated it (but you will still be able to see traces for a while if you google the text — and now that text has shown up again; definitely a work-in-progress!).  Almost nothing is making sense this month, but if some technical S&P 500 stat visits that level a third time, at least we’ll have confirming evidence that Tim LaHaye is now working for the Plunge Prevention Team. (I really have to check in with the Perry F. Rockwood crew down on Green Street :( )

MISH called BS [2] on the infamous Citigroup "leak" yesterday, but still thinks that a strong Bear Rally (or better) is in the cards.

So Citigroup has a profit, excluding what?

Who knows? Pandit did not say.

In other news, I am announcing I have $10 billion in my bank account except for the portion of the $10 billion I do not have.

Bear in mind the market is not rallying because of this nonsense. The market is rallying because at a minimum, it was technically very oversold and was ready to rally. Furthermore, this rally has the potential to be much stronger than most think.

Still, all this turbulence must be making it awfully hard for companies to raise equity capital to do neat stuff.  The NYSE has been an entertaining casino the last while, but when all is said and done isn’t the purpose of a bourse to let investors back people who are working to build real value?  The debt markets have been really toxic, even evil recently,[3] and a return to sense and stability in equities is long overdue.  If it takes a big bad Bear to burn off the fluff, perhaps it’s all for the best.

——————

[1]: "US Stocks Gain as Geithner’s Injection Plan Drives Bank Rally", by Rita Nazareth and Lynn Thomasson, Bloomberg, March 11, 2009.

[2]: "Another Bear Market Rally or Something More?", by Mike Shedlock, Global Economic Trend Analysis, March 10, 2009.

[3]: " ‘Sinful’ model of lending brought world’s economies to their knees" (letter), by Professor Fenton F. Robb, Scotsman, March 10, 2009.

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6 Comments for this entry

  1. mtnmike says:
    March 11, 2009 at 12:56 PM

    John,

    The real question is; How much did the profit at Citi cost?

  2. Hutch says:
    March 11, 2009 at 2:36 PM

    Ah.., but didn’t you listen to Jamie Dimon?
    We could easily see new improved ‘Mark to Model’ before the next quarterly reports and then everything will be just hunky dory.

  3. John M. says:
    March 11, 2009 at 2:48 PM

    Somebody needs to do a back-of-the-envelop estimate of the harm caused by these people compared to that caused by the present group of guests at Camp Xray.

    “Dimon Says System Can Be Saved If ‘Vilification’ Ends”, by Elizabeth Hester, Bloomberg, March 11, 2009.

    Jamie Dimon, chief executive officer of JPMorgan Chase & Co., said the U.S. can rescue its banking system by the end of the year if officials start cooperating and stop the “vilification” of corporate America.

    “If we act like a dysfunctional family and we don’t finish these things and we’re forever debating them, I think this will go on for several years,” Dimon, 52, said at a conference hosted by the U.S. Chamber of Commerce in Washington. “It’s completely up to us at this point.”

  4. Hutch says:
    March 11, 2009 at 3:58 PM

    How do you find the best bargain prices? Go back a few months and look for the heftiest mark ups.

    http://www.time.com/time/business/article/0,8599,1884290,00.html?iid=tsmodule

  5. surak says:
    March 11, 2009 at 6:03 PM

    Dead cat bounce??

  6. Coffee says:
    March 11, 2009 at 9:53 PM

    Mar 11 2h 38min, I hate when that happens.

    Years ago the clock was set for March 11, 2009 for the turn to happen, and when it does it gives shills.

    This is the military clock set for the spring equionox for the full moon. It is scary to see the number of extremes at this time table.

    http://aa.usno.navy.mil/cgi-bin/aa_moonphases.pl?year=2009&ZZZ=END

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