The Power Of One

You never know where a catalyst for buying may come from. Sometimes, it’s simply bottom fishing after a market slide and at other times, it may be encouraging words from an influential analyst.

Yesterday, it appeared to be a combination of both. However, when Meredith Whitney, the analyst who became famous for her 2007 prediction that Citigroup faced huge losses, uttered her first buy rating (Goldman Sachs) in two years, the markets jumped and never looked back.

The rally moved the Dow to its highest level since July 1, however, volume was light, and the economy still does not show any signs of a rebound. Nevertheless, it was the biggest gain for the indexes since June 1.

One day does not make a trend, and we will wait and see if corporate earnings along with forward guidance can support new upward momentum.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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