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A new Rally Attempt in the stock market

Today the [tag]stock market[/tag] provided impressive [tag]gains[/tag], which marked the status as “Rally Attempt”. It seems like the market has found its bottom. It could be a short live attempt however, and it still may fail. Recently the market hasn’t responded to bad news with further drops and it tried to rally three times in a short period row. It seems that the bull is eager to ride up and bring the end of this [tag]bear market[/tag]. It is said that the market has a predictive potential that it can predict improvement of the [tag]economy[/tag] (or worsening on the other hand) about six months ahead. Economists and market commentators speak about improvement during the first half of 2009 or at the half of the 2009. This rally may be the prediction of it.

However, do not be excited. I am not.

+298.76 +3.46% 8,934.18
+62.43 +4.14% 1,571.74
+33.63 +3.84% 909.70

It would be nice, if this bear finally ends its reign, allows the bull to take its run, and provides new opportunities to make some [tag]money[/tag]. Everybody in the market, [tag]investors[/tag] deserve it. We suffered a lot of damage and all this has taken a long time since 2007. However, some suspicion is necessary since today’s rally was, once again, based on promises and wishful thoughts. If this rally survives, we should get ready for new investments. Take a look at the graph to see how the market is virtually trebling as it wants to run up:

Dow Jones Industrial

Tip: If this [tag]trend[/tag] survives, and the rally will continue up, I would still recommend staying aside and waiting. One of the rules of [tag]Reverse Scale Strategy[/tag] is to wait for [tag]50 day MA[/tag] to raise above [tag]200 day MA[/tag]. We still have a lot of time before it happens. During this period the market can fail several times. During this period the market and [tag]stocks[/tag] shall show their strength and stocks shall show who would be the new leader. It is psychologically difficult period and you need to strive hard to resist buying new positions. It is not the right time yet. Almost all stocks are cheap so waiting won’t hurt you; let’s wait for the market to tell when the right time for buying is.

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