Time For A Market Rebound?

Two of the smarter people I know made similar remarks today that the market was ready for a rally now. One is a private trader and a truly outstanding technician, he said: The S&P held important levels and was trading on volatility extremes in every time period so he suggested buying a trading psition. (note: he is not talking about optionvolatility but emotional volatilityfor which he has measures)
The second remark was in the GAVEKAL forum where Anatole Kaletsky respnded to a commenter who said "we have to be at a cry uncle point", by saying:

I agree.

1. Today's big shock was the Philly Fed survey. But contrary to bubble-vision comment, this "shocking" number was perfectly consistent with Mid-Cycle Slowdown and well above recession levels (see chart 1).

2. Sentiment on Wall Street is now second-lowest on record - and far below 1987 or 2000/01 (see chart 2). So US investors are more shell-shocked by sub-prime than by the 1987 crash or the TMT bubble!

3. John Thain calls Merrill Lynch write-downs "extremely consiervative"

and suggests they leave room for possible write-backs and rapid profit growth from now on

4. FDIC head tells Bear Sterans conference that "if market solutions fail to solve the sub-prime problem" the Federal government will "step in".

5. Bernanke endorses $150bn fiscal stimulus and House Dem leaders promise agreement with Repubicans on a specific package by State of the Union on Jan 28.

Can a bottom be far off

I agree as a trader, and I bought very small at the close Thursday and will add some Tuesday, but only for a small position and for a trading swing. I am not calling for a new bull market. Be careful out there.