Can the Rally be Stopped?

May 8, 2007: 8:32 PM CST

“Make hay while the sun still shines” or so the saying goes.  It’s not often we see such strength in the market, especially with dark clouds on the economic front upon us.  Maybe that’s exactly why we see market strength, from a contrarian perspective.

The Dow Jones Industrial Average has risen 24 out of the last 27 trading sessions, which ties the record set in 1924!  Folks, that’s amazing.

Today, we had a morning sell-off above 60 Dow points which rallied to close just under 4 points where it opened.  To me, that’s amazing.

Folks trying to short this market keep getting buried.  Price action is key, and we must follow it.  Nevertheless, I am amazed at the recent action.

dow-may-8.png

My hat’s off to you, bulls.  It’s very rare when either the bulls or the bears win so decisively, as we have seen within the last few weeks.  When will it end?

Why try to anticipate the end?   Many shorts have been stampeded trying to do this.  Join the bull crowd and stop doubting this move.  When it’s over, it will end, but until then, odds favor continuation and it is nearly impossible to predict the absolute top so my advice is not to try.

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