»

[StocksonWallStreet]

The S&P was trading at as low as 676 in March with the Dow Jones equally as low at 6,547. Since then the S&P has is up 46% and has risen 310 points to 986. The Dow Jones is equally impressive going up 40% a total of 2,607 points to a high of 9,154. I am a firm supporter that long-term the markets will continue to follow this ongoing trend and will head upwards. Analysts all over have become very negative especially towards equities quoting that due to the fiscal deficits our economies currently hold history has a lesson to teach us. I say to them, yes history will repeat each for the better good of the equity markets. Deficits have always been preceded by significant rises in equity markets. Look back at the markets in 1949, 1975, 1982, 1992, or 2003. Those who were not scared off by the downfalls in the markets and maintained their equity positions welcomed in the gains. To add to this we seeing the more bullish signals come out. Most importantly the Golden Cross has come into play, which has been seen or is about to take place in many indexes across the world. What is the Golden Cross? The Golden Cross is a signal of bullish markets and occurs when the short-term moving average overtakes the long-term moving average. In this case we will set the 50-day moving average has overtaken the 200-day moving average in both the Dow Jones and the S&P 500. Look at the graphs for example. See the crossover of the 50-day moving average taking over the 200-day moving average. Click on the link to read the rest:

Bull Market Rally: The Golden Cross shows Bullish Technical Indicators | Stocks on Wall Street

[StocksonWallStreet]

Looks like the Golden Cross proved to be right again as we are up well over 400 points since.

[StocksonWallStreet]

I trust individual sectors not the market as a whole, the thing that scares me is how the fed will handle the interest rates and growing inflation.