Thursday, February 18, 2010

Rosenberg: The rally was all technical

"...bounce was purely based on technicals...this in turn means a test of 912 in the S&P 500 is inevitable..."

Last year he said we would retest 666, which never happened, so now he has upped his target to another level that will never happen! Again!

Breakfast With Dave Breakfast 17, 2010 (David Rosenberg)

Contrast what Rosie has to say with JPM, who rightly and correctly is saying that already everything detrimental is already priced in but they use a bit a fancy banker speak when they say it:

Our medium-term strategy of being long risky assets depends on both the global recovery strengthening, or at least not weakening, and fading risks and growing confidence around this recovery. Markets have focused on three sources of uncertainty—monetary tightening, fiscal tightening, and renewed delevering. Our view remains that over this year, these risks are less acute than the risk premia we are getting paid, in particular in equities.

Now you know why Rosie's namesake couldn't get a job at the Price is Right!

I already said that the retest of 666, in this upside world happened already at 999.

So in Rosie's honor, maybe he's bidding on the popcorn machine!