What Are Others Saying About This Stock Market?

I’m looking for what other people might be saying about this stock market. I found some videos out there with an interesting take on this stock market.

Mohammad El Erian spoke about how this is too early in the rally to call a market bottom.  He was on Squawk Box the other morning.  He fears that policy makers might be acting in a similar fashion to the last twelve months which proved to be too-little-too-late.  The longer politicians wait, the more expensive the fix will be.  They must have the political will to do what must be done.

On Bloomberg they talk about how the S&P 500 (^GSPC) is not bullish right now.  No matter how un-bearish it might be, we are still below the 50 day moving average.  They show the NYSE new lows line - specifically the 10 day moving average.  If this line deteriorates and continues to make new lows, that will be a positive sign.  Then he shows the percentage of NYSE stocks above their 200 day moving average.  This is amazing how horrid this graph looks.  They call this an ‘oversold’ reading.  I call it a sign of the times.  Then we have our cumulative Advance Decline line.  It’s still bearish and will be until the moving averages of this indicator turn higher it will not be a sign of a bull market.

Overall, the analyst calls this a rally in a bear market and until some of these indicators turn more bullish it will not be more than that.

The bounce of the century?

Leave it to Fast Money to take a nice bear market rally into something way overblown.  The analyst that they have says that the market is so oversold that they expect the best oversold bounce “certainly in this century”.   He likes the market to continue to move higher for two months - about to Memorial Day.

He likes Tech (information technology) and healthcare.  He’s not necessarily a fan of the Semiconductor index more than any other - he just likes tech in general.

Watch the percentage of stocks above their 50 day moving averages.  If it gets to be over 80%, then that will be a sign to unwind some positions and get short again.

So we have some people preaching caution and others calling this the bounce of the century.  Well, I guess take it all in and make up your mind.  Both of these videos call this a bounce only and that there is no reason to think that the bear market is over and we’re all bulls again.  This is a temporary condition.  Nobody is calling this the bottom.

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