Tuesday, March 03, 2009

Dead Cat

The Dow Jones Industrial Average has fallen about 8000 points from it peak last summer -- over 50%.

At its high so far today, the Dow Jones was up 70 points; it is currently up about 11 from yesterday's close.

And Bloomberg News calls this a "rebound."

Granted, a short covering rally could ensue -- why not? Not only do shorts have some profits to take, even beginning technicians are familar with Elliot Wave ideas on bounce points (50%, for example). A few good headline might just induce the expected bounce.

But still, while it may be hopeful or even prescient to call a 0.14% move a "rebound," is it sound journalism?

Addendum: Scratch that last -- who really cares if it's "sound journalism?" Everyone knows Bloomberg is just a story-mill. What I really meant to express was my amazement that the collective psyche is at the point where an ankle snapper is described as a big mama.

This brings to mind other things, like does the Treasury (or some other entity with an interest) employ a consultant who says things like, "It's down 50%, Elliot Wavers think a bounce is coming, start peppering them with positive headlines to scare the shorts and you'll get a rally..."
Or maybe, "Blue Horseshoe loves Teldar Paper...."
Ahh, well, who knows...


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