The Bear Market Rallies

By Denise McCosh

November 24, 2008

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Wow, it looks like the major rally I predicated last Thursday definitely came to fruition on Friday and continued today. I would imagine we will see some sort of pull back and then more upwards movement for awhile. However, this is still a counter trend rally in a larger super cycle bear market.

My advice to retirees, stay safe and keep wealth preservation as your main goal.

Traders, my advice is take a break and enjoy the holidays! One of my rules is to trade with the overall trend and not speculate on the counter trend moves.

The overall trend is that we are still in a bear market. There is plenty of bad news on the way; more unsolved problems, coming tax increases, higher deficits, a coming collapse of the commercial real estate market, higher unemployment and everyone is lining up for a bailout - banks, manufacturers, insurance companies and homeowners. The Ted Spreads are still high and remained essentially unchanged today despite the market mania.

Gold and Silver have sure rallied. In the Short/Intermediate term, gold looks like it will move up in a Fibonacci retracement to around about $875, before the next leg down. If it breaks above $900, then that theory will be out the window. Longer-term, gold should do well.

Looking forward to the day, when I can say the bull market is confirmed and here to stay. 


 

      
        
©2008 Bawden Capital:
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 Jennifer now runs her own technology development and private equity consulting business, Bawden Capital. She is co-founder of Innovative American Technology, a Homeland Security sensor company and is on the Business Advisory Board at Neogenix Oncology, a cancer diagnosis and treatment company. She is also the editor of the Contrarian Consensus.