We’ve spotted an unconventional sign that could signal the market is turning a corner. It’s not what most investors watch, but it could be speaking volumes!
And that sign comes from comments made by famed hedge fund manager James Chanos on CNBC. He made a killing betting against the market last year, but on Thursday he told us, "the markets are doing a lot better. Credit spreads are coming in. Confidence is coming back into the markets. The omnipotence of short sellers seems to be on the wane. I think that generally people are looking at the glass half full right now.”
Of course Chanos didn’t say he’s out of his short positions entirely but he did admit in the financials he was significantly lighter on the short side.
Now when a celebrated short-seller such as Chanos -- who’s renown for being able to spot stocks that are overvalued – starts to sound somewhat bullish, that can’t be ignored.
And in a much more conventional sense, the latest economic data released Thursday also revealed a glimmer of hope that a rebound may be on the horizon; the number of U.S. workers filing new claims for jobless benefits unexpectedly fell last week.
The Street may be taking it as a sign to start betting on the consumer - shares of Consumer Discretionary SPDR ETF are now positive for the year.
Of course there are plenty of signs that the market has not, in fact turned the corner. Barry Diller told CNBC today that "people have not yet faced what I think they will have to face." You know that side of the argument, commercial real estate and consumer debt are lurking in the shadows. There's no need to repeat it here.
But it does beg the question, which opinion matters most? We think it's yours! Tell us what you think. Answer the Charles Schwab Question of the Day!
See what the Fast Money traders think about the market turning a corner. Watch the video now!
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Trader disclosure: On Apr. 16th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (EEM), (FCX), (GE), (RIG), (TCK); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman's Firm Owns (UNH), (MSFT), (RIG), (PBR), (CSCO); Finerman's Firm Owns (WFC) Preferred; (C) Preferred; (BAC) Preferred; Finerman Owns (BAC) Preferred; Finerman's Firm Is Short (BAC), (WFC), (MDY), (SPY), (USO), (IWM), (IJR), (C); Najarian Owns (BX) Call Spread; Najarian Owns (PALM); Najarian Owns (RIO) Calls; Najarian owns (VAR) Call Spread; Najarian Owns (XHB) Call Spread; Najarian Owns (NTAP)
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