A very strong day in the markets today as the major indexes moved 6 to 7 percent. I just read that the Samp;P is up 23.4% in 11 trading sessions (thanks a href=”http://twitter.com/fundmyfund”Mark/a). That is the snap-back rally that I’ve been looking for in the past month. The market liked the fact that Geithner and Co. finally showed something resembling a plan. The market is so starved for good news that it will now settle for bad news spun as good news. br /br /This puts investors in a dangerous spot though. Obviously the average investor isn’t taking part in this rally. Its all speculators and hedge fund traders with computer trading programs. We are literally building a house with no foundation, and just like a house built that way, this rally could collapse at any time. Bottoming is a process. Maybe it has happened, maybe it hasn’t. But I can’t fully endorse buying stocks until I see more economic data, and some sign of stability from Washington. br /br /Right now those in charge seem content to borrow more just to escape this mess “on paper.” This makes me a bit worried.br /br /So, the call to buy into the market in a small position was a good one, so it seems. I still wouldn’t head in full steam. This rally may carry on for some time, especially if there isn’t a lot of new news which shocks the market. We’ll see what tomorrow brings.div class=”blogger-post-footer”img width=’1′ height=’1′ src=’http://res1.blogblog.com/tracker/819581243324579563-2699452952673085279?l=briskycapital.blogspot.com’//div

Last 5 posts by Michael E. Brisky

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