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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Kass: Rally Through Summer?

This blog post originally appeared on RealMoney Silver on March 18 at 7:36 a.m. EDT.

From my perch, the American International Group (AIG) bonus outcry and today's House Capital Markets Subcommittee hearings are simply a sideshow to the main event -- namely that we have likely seen a significant and maybe even a generational low in the U.S. stock market.

How to seek alpha in a bull market was the message I tried to communicate on CNBC's "The Kudlow Report" last night.

I continue to view the March 5 low as the "Nouriel Roubini stock market bottom," the day the grizzly NYU Professor pronounced a 600 or lower S&P 500 price objective during his worldwide lecture tour.

A confluence of negative sentiment, historically low equity valuations, a noticeable deceleration in the rate of decline of industrial production and a strongly positive-leaning set of market internals have conspired to produce a combustion in the world's stock markets that is likely to be sustained through the summer.

Here is the tape of last night's show.

Tactically, I wouldn't expect the market to continue its straight up move as it has done over the past week. Nor would I anticipate a correction to anything near the Nouriel Roubini stock market bottom low of March 5, 2009. As I displayed earlier this week, below is a chart of my specific expectations for the S&P 500, using the SPDRs (SPY), through the middle of the summer 2009.



SPDR Trust (SPY) -- Expectations
Bloomberg

Most have been caught flatfooted in the face of the market's rip, and it is hard to find anyone who believes that the rally is a prelude to a sustainable advance.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs