30 April, 2009

Best Month since 1938, not an April Fools Joke

No Foolin'? That's right, the S&P has had the best month since 1938 in April, as Butch & Sundance so poignantly put it all those years ago in the classic film.  The bears have been watching from the sidelines in seems all month long as this Bull Market rally will try to continue into May.

CNBC has broken down some of the monthly statistics here (Link). Several promising signs have been had, especially a leadership earnings role by Technology and a renewed confidence in the banking sector, however a little heed should be taken as the same network touted the potential of Dow 10,000 in the summer.

As President Obama celebrated the 100 day milestone, its clear the American economy is in much better shape now, as opposed to the close of 2008, however it'll have to get much better much quicker than anticipated for the Dow to reach those milestones so soon.

With strategists and economists predicting almost uniformly now that the markets will not be retesting early March lows you can see why Traders are climbing back into the buyers column. Technical, and more importantly, Psychological support has been built into a market that still is off about 35-40% from late 2007 highs. And that's no late April Fools joke.

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