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How Much Higher?

Before I get to the market forecast for the week, just a quick reminder that this IS a bear market rally, and once it ends: "Too-big-to-fail" banks like Bank of America andCitigroup, and corporations like Chrysler and General Moto ...

Posted On May 06, 20091 MIN Read
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Before I get to the market forecast for the week, just a quick reminder that this IS a bear market rally, and once it ends:

"Too-big-to-fail" banks like Bank of America andCitigroup, and corporations like Chrysler and General Motors, WILL ultimately be allowed to fail; their shareholders will be essentially wiped out andtheir creditors will have massive losses.
In the stock market, the bear market rally we've seen will end; the financial stocks will give up all their gains and the broad averages will plunge to new lows.
Credit markets will freeze up again, the government's stimulus package will be overwhelmed, and any pause in the economic decline will be over.

Having said this, I have no clue whether the bear market rally has a week or six months left to go.

As you can see from the charts below the markets have been steadily moving higher. April's close completed the best back to back monthly performance in over six years. And, the streak continued on Friday with both the S...

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