Halfway through a year where the Dow has lost nearly 1000 points, could a rebound be right around the corner?
Although it’s hardly a sure thing, Miller Tabak chief bond market strategist Tony Crescenzi suggests that the market could rally substantially next week if a few key items fall into place.
Here’s a synopsis of the case he made live on Fast Money.
“There is a scenario that has a low but reasonable chance of occurring next week that could result in a very large rebound…. say 500 points or so, in the Dow.”
”If the G-8 delivers a communiqué showing a preference for a stronger dollar and if OPEC boosts oil production, the combination could jolt the commodities markets, and bring a huge sigh of relief to investors.”
That combined with positive earnings news next week could send stocks soaring, according to Crescenzi.
Traders what do you think?
Tabak seems pretty convinced, says Guy Adami. I think you can position yourself on Friday for a big down move in oil and a big up move in stocks. Just put tight stops on everything.
It’s hard for me to see a scenario coming about next week that creates a buying panic in stocks, counters Jeff Macke.