Best 12 Days Since 1938

The markets have had their best rally since 1938.

After watching the manic action today, I was reminded of a post I wrote late last year –

http://nbcharts.blogspot.com/2008/11/best-5-days-in-75-years.html

That rally ended in failure. Let’s take a look under the hood in today’s market –

Where is Big Money? 5 New 52-Week Highs ($NYHGH)! Five?
Percent of Companies about their 200-day moving average ($NYA200R) 10%?

I showed you that when the market truly bottomed in 2002-2003, these New High list exploded to several hundred names and the Percent of companies above the 200-day exploded to over 80%.

Those numbers let you know that there was broad-based buying by Big Money. They were buying with both hands, during a period of horrible economic news and the trend carried higher for several years.

When Big Money shows up, I will buy. Until then, this is a Bear Market rally to be shorted.

I think you are seeing the violent price movements, because nobody wants to take anything home at night, long or short. That is because prices are too high to attract real investors. More downside testing seems highly probable.