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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:

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Questions? Comments? tradertalk@cnbc.com

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  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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