What Bear Market?

The last few weeks we've seen the best run in a very long time. Everything seems to be on an upward trend, except for profits.

Those who bought when the stock market was at its worst, the pay-offs could not have been better. Seeing the way the market has risen, I can only wish that I deployed most of my cash into stocks.

Knowing that very little has changed in terms of the deteriorating economic conditions, I don't expect this bear market rally to last for long. However, I must say that the trading volumes have been impressive. For instance, 8.7 billion shares changed hands on the NYSE with another 2.2 billion traded on the NASDAQ against the backdrop of the Easter weekend.

I haven't been monitoring the trading volumes closely but it looks like everyone is out to make the most out of the rally.

Personally, I am tempted to take short positions because there is hardly any positive macro-economic news out there. I doubt if we will retest the March lows but if we do I'll be sure to take advantage of the dips.