http://trend-signals.com/newsletter/2009May07.pdf
Caveat: post-Green bombs rather than Green shoots Markets are very overbought with the Green shoots of 30-40% which stabilized the panic financial system, and now we are hearing unrealistic bullish hype on the street. It is Time to take-profit and to be conservative as greedy pigs will be slaughtered.
The Fed and the Gov intervention of financial markets is usually retested as we can see the Mar and Aug 2007 lows, when the Fed Bernanke intervened, were retested in a few month after making tops.
With the massive Fed and the Gov intervention, markets have shown strong rally while fundamentals are not yet supported. Markets are very overbought and ready for a correction. SPX 950-1000 Profit targets as massive mega funds exits: Faster markets rally, faster markets will sell off.
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