This Day On The Street
Continue to site
ADVERTISEMENT
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

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 - Get Report) 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

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
SPY $205.47 -2.07%
ACE $101.60 -1.81%
ALL $64.68 -1.75%
AIG $61.59 -1.82%
CB $94.67 -1.85%

Markets

DOW 17,596.35 -350.33 -1.95%
S&P 500 2,057.64 -43.85 -2.09%
NASDAQ 4,958.4680 -122.0370 -2.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs