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Is The Market Setting Up for a Huge Rally?
March 13, 2008
Ever the contrarian, I look at charts and wonder: is the market setting for a huge rally that will decapitate all the supremely confident Bears?
Yes, we all know the economy is sliding into recession, and very likely a deep, prolonged one; that oil is $109 and heading who knows how high; that the credit bubble has popped; that the dollar continues downward in what looks like a death spiral; that trillions in derivatives are poised to tumble into the abyss--the list of ailments is so long that we wonder why the patient hasn't just expired from exhaustion.
I brought up the possibility of a real rally on January 30--not just a one or two-day short covering blip, but the real deal: We Told Ya So--But So What?
In the face of overwhelming evidence that the stock markets should fall another 30%, or perhaps 50%, why do I persist in looking for the chimera of a rally?