Trader’s Narrative

Check out the latest Economist cover to your left. Can it be any clearer that we have a washout of negative sentiment and a significant bottom being put in here?

Of course, I’d love to see BusinessWeek do one of their infamous covers or a general magazine like Newsweek or Time but I don’t think what we are experiencing is of a magnitude to deserve such treatment. This is just an intermediate bottom, not a multi-decade or multi-year one.

In any case, it is amusing for me to see the Economist putting this cover out, especially as their recent Goldman Sachs cover was so useful. For contrarians that it.

When that cover was published, GS was trading around $160. It then proceeded to fall to almost $140 (and has just begun to rebound).