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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Friday, May 1, 2009

Second greatest rally in history

CORRECTION: Click here to READ.
Today marked the second greatest US stock market rally in history! The SPX started at 666 and ran up to 888 today, a total percent gain of about 33% in about 7 weeks!

What was the best % market rally ever? Why 1929! But wait? Wasn't that the year the Great Depression was credited to have started.

BINGO has been called! This is called a BEAR Market rally, and it doesn't last. Could last another two weeks, or its about to go down Friday. But it's not going to last.

Point is, if your caught long from pre-August, be prepared to see some significant % losses from here. Everyone has to make their own decisions, and see my disclaimer on the right, I am an unqualified arm-chair financial pundit.

But if the last time in HISTORY that the stock market gained such a huge percent in such a short period of time was 1929, this isn't good news.....its real bad news.

We may fall, then rally higher, before falling for the final swan dive, and that is still my thesis. But this could be the swan dive about to begin here and now. A swan dive should take us 50% lower from here.

So I urge you, if you regained a bunch of losses, now is a time to take a percent off the table. 25%? 50%? Its your call.

From WebSurfinMurf's Financial Blog

I am still holding my gold miners long. In a "panic type" downswing, gold may get a big boost, and take the miners with them. Silver miners look even better, and I may squeeze some money into them long. Added to my shorts Thursday.

Good luck.

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