Five major indexes have all commenced a primary up-trend, signaling the start of a bull market. A word of caution: the recovery is exceedingly fragile. I will only feel comfortable with the bull signal when the Fed and other central banks start raising interest rates. And that is unlikely to occur for some time — without risking a second contraction. Keep your guard up — and your stops tight.
From Tim Knight:
Your crooked friends in Washington and in the Goldman Sachs building are the only reasons for this rally. Maybe the market won't collapse until Q3 earnings start coming out, and until then you will keep snickering. But my faith that:
1. The truth about the economy will, sooner or later, emerge;
2. Like prayers, technical analysis may be "delayed, but not denied" in its projections
3. The fortitude of those strong enough to stick by their intellect-based conclusions will, in the end, win the day, even if the bullies and fraudsters managed to fool the public for a while longer.
While only time will tell who is right or wrong, the bottom line is both are very sharp individuals who have a great deal of insight. Read and follow both of them.
