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Rally???

February 26th, 2009 Karl Haas

We are up 128 points as i speak and evryones looking to go long this market. Its funny how one or two days get people in the mood to go long. If you look at the DOW you can see we have lost 1200 points in the last 3 to 4 weeks. So one or two up days dont make a trend reversal. Sometimes you just have to look at the bigger picture which is the charts, the charts dont lie. Remember this is real time live in the market trend recognition software, so until the longer term trends go green with some angle and separation, continue to think short. Lets not try to call a bottom, we have seen what happens everytime someone says this is the bottom, we make new lows and the trends push lower. Follow the lights, you may think that $2.00 stock looks good at this price, but whats the problem at buying it at $4 or $5 when the trends are green. Right now if your buying stocks because they are cheap, good luck... Remember those $4 and $5 stocks that looked like they were good opportunity, they are now $1 and $2 stocks. Ask Merrell Lynch and Bear Stearns how low a stock can go. Good luck and happy trading.

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