The Dow closed the day at 10,018, it’s first close over 10,000 since closing under last week. The S&P closed the day at 1,060, up 3.1 percent for the day. Bull rally or bear trap?
The Dow Drops Back Below 10,000. Yes, Skittish. [SocketSite]

9 thoughts on “Dow Ticks Back Over 10,000: Bull Rally Or Bear Trap?”
  1. The market gives, and the market takes away. TSLA is 15% under its IPO price.
    I sold last week, though a bit too late to lock in substantial gains.

  2. I don’t think 1 day can really tell us anything, there have been plenty of 3% up and down days recently.

  3. we’ve been in a trading range with a downward bias for some time.
    my guess is that this will continue for some time as well.
    bear markets are particularly difficult to trade because the volatility is so high. thus, you get a lot of up and down days. (and you get massive “bear market rallies” like we saw last year).
    as for Tesla: it is unsurprising that they are down since the first few days of trading. This is typical with IPOs-they start with a bang and then slog through for a long time. it is one of the reasons why it is so very important for the investment bank to price the offering correctly, to give the company as much money from it’s IPO as possible. the IB clearly did not do a good job of this as we saw with the 40% rise in a day.

  4. TSLA going to 10ish and staying for a year. The market in general is going to go down slowly for next 3 months, and then we will finish back around 10k. 2011 I’m guessing will be another wild ride, and we can HOPE that 2012 will begin a steadier climb back towards 12k….BTW, this also is how I would guess the housing market goes, no real appreciation for a couple years, and maybe more decline in the meantime

  5. pretty clear oversold/bear market rally. I am long the aug 105 SPY calls since tuesday but will bail out soon and look to short at the 50 ema around 1095.

  6. The 10 year bond is pointing at some serious stagflation. The nikkei in 1985 was at 35k, now less than 10k. JGB market yields are sub 1%. That is what happens in a deleveraging society. I would be surprised if we break 12k Dow in the next 3 years !! well thats what the story looks like in the bond markets !

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