Bulls Believe Day Will End With Gains
Will the rally hold? For the first time in weeks, at least half the traders I've talked with think we will end the day with gains, though perhaps not at the highs. Bulls say:
1--We have broken the "sell in the last hour" mantra in the last two days.
2--There is a greater chance of positive news in the coming days than negative news. What positive news? Rate cuts and accomodative Fed statements, more news on Paulson and his plan to freeze ARM resets, maybe something out of Europe.
The risk here is that we have already had a nice gain this week (S&P 500 up 2.6%), and there is certainly a chance of profit taking. But the negative mindset has definitely been broken.
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