On Thursday optimistic investors were hoping that the down draft earlier in the week was nothing more than a blip on the radar and that the bull was back.
Relatively positive earnings from Cisco and mildly encouraging economic data were all that was needed to send bargain shoppers sweeping into the market gobbling up stocks that felt just too cheap.
Now the question becomes – is the worst of the selling over?
Fast trader Steve Cortes sure thinks so. He says like George and Louise Jefferson – “we’re movin’ on up!” (You can play the theme song below compliments of our friends at TV Land.)
He thinks the market goes higher because “there is far too much fear. The bottom is in. As terrible as yesterday’s price action was – it didn’t break Tuesday’s low. That’s incredibly significant.”
He goes on to say “The disorderly chaotic selling that we saw this week is indicative of a lasting bottom and I am very constructive and very long – and buying more on the way up.”
And it’s not just Cortes saying it. On Monday strategic investor Doug Kass, who is celebrated for his market timing told us something very similar. Click here to go to Doug Kass: Stock Market Put in 2011 Low on Monday.
OptionMonster Jon Najarian largely agrees. He watches the Vix and above 40 he concedes the market will swing in either direction as much as 2%. However, he says “as far as the US market I think we’ve seen the bottom.”
Trader Steve Grasso is far more cautious. He expects the S&P 500 will re-test 1100 and what happens when it does will be his market tell. However, Grasso always keeps an open mind. If the bulls are indeed back in town he thinks a close above 1173 for a couple days will provide confirmation.
Trader Guy Adami remains skeptical. “I don’t think the bottom is in by any stretch” he says. That’s not to say Adami doesn’t expect the bounce to continue. “The S&P could rally another 50-handles,” he says. “But with the Vix north of 40 there’s major risk in this market. I do not believe the bottom is in.”