This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Restrained Rally Slowly Emerging

This column was originally published on RealMoney on Nov. 2 at 11:35 a.m. EDT. It's being republished as a bonus for readers.

On Sept. 9 , I outlined why it would take a few weeks for the enormity of damage from Hurricane Katrina to sink in. Among other disasters, I compared the hurricane to the impact of the 1973 oil embargo and the 1906 San Francisco earthquake: In each of those examples, it took investors a period of weeks to wrap their heads around the economic harm that had been wrought.

It turns out that this disaster was no different. Market participants' belated acknowledgement of the storm's massive impact led to the historical pattern repeating: Markets shook off the storm, rallying for few weeks, before pulling back. They then rallied one last time before calling in sick for the month of October.

And oh, how sickly they were. The action in the first two weeks of that frightful month did significant technical damage to equity markets as trend lines cracked, breadth decayed and a variety of other indicators went from bad to worse. The damage to investor sentiment was just as bad.

It has taken some time to repair the technicals as well as investors' psyches. Some of the more astute among you will observe that these two things are often one and the same. By repairing one, you often repair the other.

Getting Better

Since then, the market's tone has becoming increasingly firmer. The many technical, internal and seasonal factors I track suggest that a modest, short-term, "tradeable" bottom is being formed.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $109.88 0.27%
FB $92.83 2.10%
GOOG $631.80 3.40%
TSLA $248.00 3.40%
YHOO $30.88 6.80%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs