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Russell 1000 Stocks Furthest Above 50-Day Moving Averages

A two edged sword as always.

2009 Depression Will Be Nothing Like 1929

This depression may be as bad as 1929, nobody knows. Better be prepared.

Financial Markets: The Era of Caution

The title says it all, "era of caution". Very few are calling for a V shape recovery in stocks or the economy. Momentum traders will not miss much by observing markets carefully except for a well timed trade here and there. UK Chancellor Darling says the UK is facing the worst financial crisis in 60 years and it is getting WORSE. Prieur's call for a true upturn in 2h2010 appears to be on course; Jeremy Grantham says this financial crisis will last 2 years at least which is consistent with Prieur's view of the market.

The Downside Risk to International Exposure

Quite possible that international exposure may yet get more risky; the US market was the first to fall and may be the first to recover. The key as the article pointed out to find the infexion or turning point. The inflexion point is no where in sight but we should look for it. NYU finance professor Ph D Harvard says financial write offs is set to approach usd1 trillion to usd1.5 trillion but we are only at usd400bn written off. Such logic tells us that the inflexion point may yet prove elusive for the next year or so. A recent article in Seeking Alpha based on US presidential cycle analysis calls for an upturn in 2h2010. Nothing in the future is cast in stone but the current economic situation certainly calls for caution.