Wednesday, March 24, 2010

"CREDIT SUISSE: NEAR-TERM RISKS RISING, BUT STAY BULLISH"

These guys have been correct in their calls since this October 5, 2009 post "Do not sell equities, Credit Suisse says".

That was followed by their call "CREDIT SUISSE: BUY THE DIPS – THE BEAR ISN’T HERE YET"' which we posted on February 2, 2010.
Here's the chart of the DJIA since Oct. 1, 2009, from BigCharts:



The day of the first post the Dow closed up 112 at 9,599.75.
That second post came six days before the market ended it's Jan.-Feb. swoon, at 9,908.39.
We closed yesterday at 10,888.83 up 13.4% form the Oct. 5 close.
The picture is similar if you use the S&P and if I had wanted to be dramatic I'd have used the NASDAQ.

Here's the latest via Pragmatic Capitalist:

Credit Suisse recently told investors to buy the dips as the market approaches 1200 and their outlook is proving prescient thus far. CS is maintaining their macro outlook of a strong H1 and weak H2 (in-line with my own views). They maintain that the market should remain in a bull phase thru the next 2 quarters. Nonetheless, they do warn that the market appears stretched in the near-term as the rally extends itself:

“Some of our tactical indicators suggest that market looks a bit stretched very near-term but overall they are still consistent with equities heading higher on a 1-6 month view:

market looks a bit overbought when we look at the % of stocks trading above their 10-week MA.

NYSE CREDIT SUISSE: NEAR TERM RISKS RISING, BUT STAY BULLISH

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