Determining just what we have here when reviewing the strength and weakness of the current stock index levels can lead to tricky conclusions. Is the worst over? Is this a new bull phase? New lows? The bulls and bears are raising proofs to convince themselves and everyone else.
Misreading market information, the pace of economic rise or decline is easily done. Making assumptions about today's data measures for housing, exports, and economic growth are difficult because of the magnitude of the price breaks. Foreclosure deals are getting as much attention as the flip em frenzy. An old pit adage is never buy the first rally, and foreclosure deals may fit there.
What will allow the markets to establish a long upward trend after such a large decline? China is once again being pointed to as the deliverer. Of coarse you then have to rely on a totalitarian economy pumping money to save itself and believing the economic data being generated by the Chinese government. Sounds as convincing as the AAA credit ratings of the sub-prime era.
