Friday, September 19, 2008

Huge Bear Market Rally - Buyer Beware....

Hat tip to The Big Picture for the following chart.....
The rally over the past two days is the biggest two day rally since 1929 and the Big Picture asks how did that work out for all of us? Well, it carried on for another quarter - and then stocks fell for two more years and ultimately ended up down 85% from their high.
I'm not forecasting that sort of drop, but we are looking at a historic change in our financial system and I do not think that the market has fully grasped the changes. This pop is looking a little tired already and I won't be surprised if stocks start to fade again early next week.
Oh, and preannouncement season is just around the corner!!

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