Rally is No Joke to the Bears

Although hope spring eternal, S&P futures traders are ready to quash this rally a few points higher. We are almost there; will the stops get triggered?

Bear market rallies are a thing of beauty, but the onus remains on the bulls to prove their case, and for now only time is on their side as we wait out a decisive break from the trading range.

Conspiracy theories are keeping Dick Fuld busy, but the rest of Wall Street is falling for numerous April Fools Day pranks. Briefing.com retracted comments by a blog over this post about RIM:

APRIL FOOLS PRANK
"As CTIA kicks off in Las Vegas today, Research In Motion announced that they will be shipping a new version of the infamous BlackBerry. This new version will essentially be the same as the Pearl, but running Microsoft's popular Windows Mobile. Mike Lazaridis, President and Co-Chief Executive Officer at RIM said "We expect this device to ship in RIM’s portfolio of award-winning products by mid-summer enalbing thousands of organizations around the world and include the BlackBerry® with Windows Mobile wireless platform to their employees." PocketPCthoughts.com

Speaking of jokes, we will soon find out if Henry Blodget's anti-RIM bias is on the market. Blodget was skeptical of the company's earnings prospects when they raised subscriber guidance in mid February without taking up earnings guidance. The stock is near the top of every growth stock investors portolio, and they are ready to sacrifice a few bears to further their cause.

Finally, Dick Bove might slowly fade back into the fabric of Wall Street; it is hardly constructive to have a market that moves off of his comments, or “Ambac Charlie” Gasparino’s daily pronouncements.

Bove has made some good points, but the market will soon find new data points to focus on. Financial bulls are due for a reprieve from the shelling, but we are tend to agree with Bill Gross’ comments yesterday. The brokers are in a world of hurt, and will be playing defensively in the months, if not years, ahead.

Still, we will take a bounce. And color us skeptical that the regulators will bring any action against the bears that have been shooting against Lehman Brothers.

Dick Bove on Bloomberg this morning

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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.

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