Market Bottom

With CNBC more giddy than a college kid before spring break, you have to wonder how a news organization went from doom and gloom to Buy, Buy, Buy before you could say cat in the hat. Whatever the tone on CNBC is, I remain extremely cautious on the latest rally

Admittedly, the recent uptrend in the market, over 20%, has been shocking in both its length and duration.  But with the S&P 500 hovering around 800, technical barriers now exist. 800 may represent significant resistance, if only for the fact that traders love large round numbers

The Real Story with Frank Curzio is a favorite podcast of mine, and for the past several days he has warned about being sucked into the rally for fear of missing the bottom.  Surely, unless you are a soothsayer or Mr. Madoff, which I am neither, that risk will always remain.  But I firmly believe that a witnessing of a bottom scenario is unlikely here, and that the market will remain in a downtrend.  We should remember that a plan to remove toxic assets from banks' balance sheets is only a plan, and that the bridge of price discrepancy still must be crossed