By Vahan Janjigian - What should we make of the 7% rally in the major market indexes over the past four days? In my opinion, not much. Stocks will likely give up those gains, and possibly more, in short order.
On the plus side, we saw an upbeat report from Intel. And today, the market rallied on news that Nouriel Roubini, one of the biggest bears on or off Wall Street, thinks the worse is over. But don't get your hopes up. Turns out Dell, one of Intel's biggest customers accounting for 18% of Intel's net revenue in 2008, is not so optimistic. As for Roubini, he quickly refuted comments attributed to him saying they were taken out of context. He hasn't changed his outlook at all.
Google's earnings announcement, which came after the market closed, was much better than expected. However, the sell-off in the stock in after hours trading is a clear indication that this market has rallied too far too fast.