TSG – Analysts climb on market bottom bandwagon…

Dear Trader,

TSG Stock Market Letter
Week Ending March 21, 2008

Topics Discussed This Week:

* Fed’s efforts bring out bulls…
* Leaders turn lower…
* Earnings still falling
* Which earnings reports should you follow?
* Waiting for “the” bounce?

Like daffodils in spring, analysts were out in droves calling
another … Dear Trader,

TSG Stock Market Letter
Week Ending March 21, 2008

Topics Discussed This Week:

* Fed’s efforts bring out bulls…
* Leaders turn lower…
* Earnings still falling
* Which earnings reports should you follow?
* Waiting for “the” bounce?

Like daffodils in spring, analysts were out in droves calling
another market bottom. One of the most bullish was Punk Ziegel
analyst Dick Bove who went so far as to declare “the financial
crisis over” and that stocks represented “a once in a generation
opportunity to buy.” I wonder if he will one day look back on
this comment in the same way Cramer does on his March 11 Bear
Stearns advice (see video link). But while stock investors
remain optimistic, bond traders see further weakness ahead.

That was clearly evident as the 3-month T-Bill rate dropped
to 0.387% – the lowest level in more than 50 years. Yield
spreads on corporate debt widened to a record high of 305 basis
points yesterday which should concern investors as well but
obviously stock analysts were paying little attention.

So what are the odds that we are at a real bottom?

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To read this week’s STOCK letter, please go to
http://tradesystemguru.com/content/blogcategory/34/68/
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To read this week’s INTERMARKET letter, go to
http://tradesystemguru.com/content/blogcategory/35/69/
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