The market had a monumental upswing today. It had several key factors mostly though oil was back up and rising sharply the past two days. Some good earning number, possible Greece debt deal, and okay economic data all contributed. This follows of course a couple of weeks of bad news and falling stock prices. So which way is the market really going to go? Is this just a dead cat bounce where a major fall has started hit the first floor, bounces a little and then just goes right back down and even farther. I do not think it is a dead cat bounce. It might go down some more but in the end this year I think it will be up and reach great heights. We should always keep an eye on the market and be careful about the direction it is headed.
Let's consider that it is not a dead cat bounce then the people who bought at this level will have larger gains than those who waited until someone else told them it was time to go into the market. If it is a dead cat bounce than the people who buy now will lose money at first. They can always recover it but it is difficult to recover losses. So it is always as previously stated a risk to buy into the market but one that consistently pays off with a well diversified stock picking.
So I'm going to say that this current uptick is not a fake bounce. It is a strong uptrend that will continue.
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