Typical of the dramatic bear spike comeback that is so mystifying to people and will be magnified around the globe.
The move had great force and encompassed everything from oils to consumer packaged goods to pharma. The only ones I trust, though, are the ones that benefit from a weaker dollar vs. the euro, meaning the drug companies.
Meanwhile, apropos of what I wrote this morning about margin calls and 2:45 p.m. rallies, we had both occur. Once the margin calls were over, we saw some stability, and once we got to within 75 minutes of the close, we got the serious bounce.
Here's the problem: We didn't get back to even. We just hit down 400 on the Dow and then bounced 250 points and then gave it up again, although some stocks actually managed to finish in the black.
So what might happen tomorrow is this: We catch a rally at the opening because we didn't finish at the lows. Then we go up about a half a percent and then we get hammered again.
I wish I could trust this bounce. I know that oil managed to finish above $30. I know the euro is strong. I know the 10-year Treasury at 1.75% is ridiculously low.
But I don't have a case for buying the market any more than I had on Friday. We can certainly have a bounce. Still, though, until we are oversold, it is a bounce worth selling, not buying.
It just doesn't get us where we have to go.