Why the Dow's best week in 82 years is no reason to get bullish

[Yo_Mama_Been_Loggin]

After stocks were pretty much in free-fall the first there weeks of March, the Dow staged its best week in more than 80 years as Congress passed its historic coronavirus relief package in hopes to bolster an economy crushed by COVID-19.

This past week, the Dow Jones Industrial Average (^DJI) ended up 12.8%, its best weekly gain since 1938, while the S&P 500 (^GSPC) climbed 10.3% for its best week since 2009.

However, Wall Street experts are cautioning that this might not be a sustained rally and warning investors to prepare for what could be a bumpy road ahead.

In a March 27 note to clients, Goldman Sachs’ U.S. chief equity strategist David Kostin wrote that “bear markets are often punctuated by sharp bounces before resuming their downward trajectory.”

Looking back, Kostin pointed to six distinct bounces of 9% or more between September 2008 and December 2008.

“Most bounces involved optimism around monetary or fiscal policy support. However, the market low did not occur until March 2009, when the pace of economic contraction began to slow,” Kostin added.

https://finance.yahoo.com/news/dows-best-week-since-1938-no-reason-to-get-bullish-195103747.html

[Hoyt]

1. Hard to get bullish when still down 20+%, futures down, and GOPers in control

during a national disaster.

[ProfessorGAC]

2. Absolutely!

The article is based on a rotten premise!
The DJIA fell >30%. So if one goes from 100 to 69, then goes up 12.8%, it's at 77.83%.
It's still down 21.17%, in 8 market days. And it went down Friday.
A bargain hunters bounce is not a rally.

[CanonRay]

3. Not to mention nothing is open

and layoffs are accelerating as we speak

[empedocles]

4. Careful. Just be sure you don't look at he March chart.