The Markets

• Telling the difference between a bear market rally and full bull market is almost impossible.
• Since March 9th we have experienced the best rally since 1938.  Since that date the S&P has gone from 666 (yeah, I know, everyone thinks that’s kinda spooky) to 869, as I speak.  Some techies feel that if we close above 870 the band will be broken and we head even higher.

• After such a stupendous rally everyone expects consolidation.  Unemployment reports will still be ugly and could be the cause of a little retracement.
• Many traders chalk up the last nine weeks to short covering. The shorts keep covering with every up-tick.  These nervous Nellie’s really don’t want to go home short.  But, they are getting beaten down and would assume they are about lifeless.
• But there are many investors who have not participated in this mother of all rallies.  If the rally is to continue it is now up to the disbelievers to shovel their side-lined money into equities.  Trillions sit in MMFs and investors may view this as their last good chance to get even.
• Indications of higher risk appetites are abundant.  For example, I have written a lot about the recent buying during the last hours of trading. Today traders exhibited a thirst to go home long…..over a weekend!

• No one said this will be easy and this cannot be good. When countries default, especially in Eastern Europe, get the dominoes out.  http://bit.ly/dg1zr
• Be sure to read the story about Madoff from this morning’s post.
  

Am ducking our a little early.  The weather has lived up to the forecast and I must, must get outside.  Here is hoping you have a delicious weekend!