Wednesday, March 11, 2009

NASDAQ Soars to Levels Not Seen Since.... Last Wednesday

While the NASDAQ returned a whopping 7.1% yesterday (and I hope yesterday is something "we can build on"), I warn all investors not to get too far ahead of themselves. As the title above and chart below details, the closing value of the NASDAQ returned it to a level last seen just 4 days previous.

In addition, yesterday's return doesn't necessarily suggest much going forward. Historically, large up days (or large down days) haven't been correlated to one-month forward returns. That said, I personally expect a pretty sharp "sucker's rally" (i.e. a jump of 20%+, before it runs out of steam to new lows) at some point in the near future.

The key question I'm asking myself... is this it?

Source: Finance

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