The Rally, Can It Last?
That's the only debate on the Street right now, now that the S&P has rallied 10 percent in a week.
The causes of the current rally are well known:
1) Oversold conditions
2) Positive comments from big banks
3) More "together" feel from Geithner, others
Right now, the skeptics outweigh the optimists. Those who believe this is a bear market rally insist:
-Bank write-downs will continue
-The reality of recession will not disappear soon
But the numbers who believe we have a shot at a bottom has increased notably this week. They point to:
-Signs that the mark to market rule will be changed, alleviating some of the bank write-down’s
-Uptick rule changes also imminent
-Geithner's public/private partnership bank plan now has more details
Reality check time? Still, a lot of traders are skeptical of the kind of moves made by a few stocks this week. It's easy for a $2 bank stock to move up, but others, traders say, seem ripe for some kind of consolidation in the coming days.
They include: (This week)
Goldman Sachs up 29 percent
Morgan Stanley up 44 percent
General Motors up 82 percent
What Others Are Saying On CNBC.com:
Questions? Comments? firstname.lastname@example.org