Friday, January 2, 2009

Taking Stock: HAPPY New Year

Last night and this morning, I was reminiscing on the adage that says what the market does in January, is what is likely to happen the rest of the year. Last year, we had a broad market sell-a-thon in January. This year, it looks as though we will have a breakout due to the massive amounts of liquidity pent-up on the sidelines that is now working its' way into the market.

Things are looking up. The Dollar has dropped, and now it looks as though the bear market rally has begun. I'll be looking for the indices to go to their 200DMA, and possibly higher, then anticipate another leg down.

According to the infamous Dr. Roubini, we are not done with deflation, so I am wary and keeping and eye out for that, hence the possible next leg down.

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