Stocks opened lower again today, and rallied back into positive territory. Anyone looking to short this market, I would recommend go for it, but use a good exit strategy. The fundamentals are very weak right now. Unemployment situation showing no signs of improving, and record high numbers of foreclosures and defaults. Not good stuff.
Bernanke is facing the problem of timing inflation preventing policies. If he acts too soon, this market is going to sink like a ton of lead. If he waits too long, inflation is going to crush any recovery. I think the calls that the recovery is underway are a bit premature.
For now, play defensively. It is still wise to anticipate inflation. Look to crude oil to point the directions of stocks in the near term.
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