Don’t Fight the Tape?

There is an old Wall Street adage that I have often mentioned about not fighting the tape.  To be sure, I really can't believe that the current surge in the market is based on anything but irrational exuberance about an economic recovery that is anemic at best.  Still, for us bears it's hard not to acknowledge that there is still the potential for further short term market gains given the technical aspects of the market which look strong.  However, I continue to believe that there can be a decisive turn in market opinion very soon given the probable realization that unemployment will remain difficult  to turn around and that housing remains a problem.  So for now, the bulls are celebrating but how long will it last?

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