Tuesday, October 20, 2009

Markets Poised for Run at New Highs

While no form of analysis can ever be 100% accurate, the above chart shows major resistance existing at current SP levels. Should the market close this week still ever higher, I can't see any real resistance until the Fed pulls the plug on easy money. Easy money has been a key catalyst for the past two bubbles: high tech and real estate. If you want to see a bubble in the making, just look at what is happening now. How can this be?

True, companies are showing increased profits or less worse than expected losses, but much of the gains are on the backs of ever increasing unemployment. You must be a capitalist and think only of stock gains if you want to survive in this economy. Basic Materials companies will continue to improve as the third world continues to make gains against the US.

It's all about growth in the third world. Soon the US will be the third world despite what the S&P does.

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