Monday, February 1, 2010

Dead Cat Bounce

Yes, once again I'll trot out the old joke that most investors prefer the dead analyst bounce but I digress.

Today's Barron's Online column is about a part of the equities landscape that got hit particularly hard. But after the damage it became very, very oversold, as was the broad market. So with today's ISM report showing the economy expanding like it did in August 2004 (don't you love economic wonks?), it was no surprise to see the market rally.

But as they say, if you drop a dead cat from a high enough perch it will bounce. Check out this chart of US Steel (not in today's column).


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