But then all it took was a hint of a new QE last June to rally the market.
In almost every sector you can find a blue-chip stock that isn't participating in the rally despite the market's low earnings expectations.
The rally in the Market Vectors Semiconductor ETF ( SMH) appears to have stalled for now at the 61.8% retracement resistance level.
Despite the rally Friday, the market could still see another sharp break to the downside before we get a strong oversold rally.
To be sure, even as domestic demand-related stocks take the lead in Japan's rally, the market remains vulnerable to any resurgence in the yen.
They were cheered on by a lot of so-called market pundits on TV whose ratings rally when the market does.
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To be sure, even as domestic demand-related stocks take the lead in Japan's share rally, the market remains vulnerable to any resurgence in the yen, given the still-large weighting of exporters in the indexes.
As the rally in the stock market fizzled last Wednesday, it was taken calmly by most.
The first bear market rally of the 2007-2009 bear market had ended 3 days earlier on Dec. 10.
The rally in the stock market over the past few months was certainly not forecast by the dismal fundamental outlook that dominated in September 2011.
The rally in the stock market is now very mature, which suggests most of the easy money has already been made on the long side of stocks, and that those now climbing on board the long side of the stock market are chasing it.
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We believe Warnaco will continue to rally as the market becomes more comfortable with 2012 estimates.
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The large casino and hotel operator also managed to raise its dividend, helping the stock rally in the afterhours market.
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For example, after a new rally in the market begins, we look for confirmation of strength and institutional participation in the form of a follow through day (FTD): a day where a major index is up at least 1.7% in price with higher volume than the previous day.
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On the first oversold rally in the stock market, the materials and energy sectors may see more short covering, but once the market starts a sustainable new uptrend, groups like the restaurant stocks are likely to do the best.
Given the lack of conviction seen in individual stock breakouts and weak rally attempts lately, the next market rally needs to prove itself, in a big way.
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That projection and the big stock market rally factoring the expectation into stock prices, has lifted not only the stock market, but investor sentiment, which is now at an extreme of optimism and complacency often associated with market tops.
But the correction ended at the June low, with a rally that carried the market up to a level fractionally higher than the seasonal May exit.
"We do not think that the yen depreciation is the only traction for the rally of the Japanese stock market, " said Mr. Takeuchi.
The bear market rally from the March 2008 lows terminated in May, as noted in a recent Week Ahead column.
The stock market rally over the past few months has been in contrast to the prevailing negative view of the economy, and the recent data suggests that stocks may be right.
Economic slowdowns worsened even as markets spiked-up in a rally since June fueled entirely by hope, a rally that already factored in much of what can be hoped for from the belated and in some cases still absent rescue efforts, a rally that has the market at multi-year highs, a feat usually accomplished only in times of booming economic conditions.
The combination of those two comments sent gold prices to record levels and triggered a substantial rally in the stock market on Wednesday.
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Mr Rosenberg says government incentive schemes have been behind the housing-market rally and the jump in car sales.
The other bears agree, and see the recent market rally as simply the authorities' latest attempt to prop up asset prices.
The dramatic stock market rally over the past few weeks has caused some analysts and advisors to recommend some of the beaten-down big banks because their valuations are supposedly attractive.
The fear of corporate managements could also be seen in the way that corporate insiders did not agree with the optimism that created the big stock market rally off the June low.
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The continued strength of the market rally now makes a test of the November lows less likely.
As the stock market rally stalled early in the week the spread has again tried to turn higher.
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