Are we seeing a classic bear market rally developing? The signs sure point to it. The S&P is now up 11.5% from its intraday low on March 6, 2009. Most “bear rally’s” lose momentum as they approach 20% gains, and this rally will not be an exception. It’s a good time to take some profits (if you have any) and be patience, most of your favorites can be purchase in the next few weeks for a discount to today’s prices.
Should you try to buy into this rally to capture the remaining 8.5%? You are probably too late, and you’ll end up on the short side.
