Tuesday, July 22, 2008

June 08 Bear market: Are we there yet? (#2)

Bespoke again on the current (20th and 21st July) rally (graph): A "buy the losers rally".

The point of all this is that a new bull market should give us new leading stocks - groups of stocks rallying to new highs. When we see the most heavily shorted/fallen stocks rising, this looks like short covering, and it is not laying the foundation of a new bull market.

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