Thoughts circulating at Jesse’s Café Américain on the current rally – bear market rally or something more promising? – Ilene
US Equity Rally in Context From the Start of the Bear Market 
Courtesy of Jesse’s Café Américain
So far the rally appears to be 9/10ths short covering and momentum speculation.
In order to proceed further and break through some formidable overhead resistance real buying by insitutions and individuals must appear and the volume adjusted cash flows must turn more positive.
In other words, so far a typically impressive bear market rally that may be getting overextended without a serious revaluation of the ecoomic outlook. Next week’s Jobs Report may help in that assessment.
The insiders and hedge funds still holding equities would greatly enjoy the stock piggies (institutions, 401k’s and private investors) coming back into the markets so they can continue to unload their increasingly worthless assets.
Here is the big picture. It is ‘possible’ that this is not a bear market which we are experiencing.
However, there is a dramatic spread between ‘possible’ and ‘probable’ that even our mighty Fed and Treasury cannot easily diminish with their printing presses.
