I’m going to play devils advocate for a “v-shaped recovery,” albeit only on the internets.
Look you, the short interest ratio’s are through the roof. Everyone from NYC to Kalamazoo is buying inverse ETF’s, hoping for swift, yet certain, armageddon.
Let’s consider a few things:
-Banks will likely write off whatever they can, from now until 12/31/07, in order to preserve their PE ratio’s for 2008, if possible.
-Many stocks are way oversold and are due for a bounce.
-Greasy turkey leg day is near, typically a great time to be long.
-For the most part, the economy is doing well.
In short, there is a very good chance we will never go below 13,000 DOW, ever– providing the bulls man up and put the hot blade to the shorts.
As you already know, “The Fly” is not calling for a “v-shaped recovery” yet. However, it’s worth mentioning, betting against highly caffeinated, well tanned, bulls has been of heck of a bad bet, consistently, over the past 5 years.
NOTE: With oil tanking, stocks have a catalyst to run, especially retail.
NOTE II: I feel tomorrow is a key day for the near term direction of the market. Should the bulls mount another rally, the shorts are indeed dead.If you enjoy the content at iBankCoin, please follow us on Twitter