Stocks have shown a notable move to the upside over the course of afternoon trading on Tuesday, with the major averages extending the upward move seen earlier in the session. Traders are picking up stocks at reduced levels following the losses seen in the two previous sessions.
In an interview with RTT News, Robert Loest, senior portfolio manager at Integrity Mutual Funds, said the strength in the markets reflects a continuation of a bear market rally that he said, may have more legs.
This rally could last for another couple of weeks, Loest said, but he added, I'd be surprised if it lasted beyond that. Loest predicted that an awful first quarter earnings season would put an end to the rally. I don't think we should look for any good news on the earnings front, he warned.
Additionally, Loest said that he doesn't expect to see an end to the bear market for several years, highlighting the fact that there is dramatically less capital and credit available in the world than there was two years ago. This is going to take a generation to rebuild, he stressed.
In recent trading, the major averages have pulled back off their highs for the session, although they are holding onto substantial gains. The Dow is currently up 157.22 at 7,679.24, the Nasdaq is up 43.07 at 1,544.87 and the S&P 500 is up 17.84 at 805.37.
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