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“BEARS BECOME AN ENDANGERED SPECIES”

21 February 2011 by Cullen Roche 6 Comments

The headline from last week”s market section of the Financial Times says bears have become an endangered species.  This sort of mentality is typical at market extremes.  The most famous case was the BusinessWeek article that declared “The Death of Equities”.   At the other end of the spectrum are the proclamations of Dow 36,000 in the late 90′s and then again in 2009 we read day after day how the world was coming to an end and corporate America would never recovery.  Now, we have slingshotted to the other extreme where bears are now “endangered”:

Source: FT

Cullen Roche

Cullen Roche

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Comments
  • Derfem

    The beast is red and alive, and the schizophrenic market will not end soon…

    02/21/2011 at 3:19 PM
  • Mark

    Fortunate are we to live in a nation where policies, rules and regulations are always fair and neutral and never favor powerful interests over those of the greater good.

    Fortunate indeed.

    Sleep well.

    02/21/2011 at 4:50 PM
  • quark

    This game has lost its allure as the odds are now with the house.

    02/21/2011 at 6:01 PM
  • paydreaux

    You left out the ’29 – ’32 comparison on your chart. We’re at a tipping point, and I think the market is about to start following the laws of gravity. We’re not looking at a wall of worry that needs to be climbed — it’s a freaking cliff: big difference.

    02/21/2011 at 6:17 PM
  • Pete

    it is precisely that headline that gets all the bear back. Anyone waiting for the Monday meltup will be disappointed this time, cuz Monday is a holiday.

    02/21/2011 at 8:16 PM
  • Klaus Bohm

    Here we go, the clear warning on the website:

    Trader Update: Saturday, February 19, 2011

    Divergent Session Internals

    …today’s session internals display quite a divergence to the rising market

    Posted by Klaus Bohm at 1:48 AM

    Kind Regards

    Trader Update Friday, February 18, 2011

    Caution: intraday liquidity flows at extreme levels

    …the index now in key resistance territory, a platform from where a sharp, bearish strike may be delivered to an overly complacent trading community. The logic of a ‘Lock-In profit’ strategy makes sense, subject to further development. *** Bingo ***

    Kind Regards

    Posted by Klaus Bohm at 6:20 AM

    02/22/2011 at 12:19 AM