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When a Rally’s Too Good to be True, it Probably Isn’t

By Rocky Vega

10/15/09 Stockholm, Sweden – Is it actually possible that the current S&P rally is the sharpest ever? Can this be real?

It’s difficult to imagine that from trough to peak we’ve witnessed the most successful recovery in the history of the S&P. Looks like the billions in stimulus have accomplished something… but, it’s not the type of accomplishment that seems unlikely to last…which is why The Daily Reckoning’s ‘Crash Alert’ flag continues to fly.

This telling chart is originally from Gluskin Sheff, but we found it first on The Big Picture.

SharpestRally3 

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Rocky Vega

Rocky Vega is a regular contributor to The Daily Reckoning. Previously, he was founding publisher of UrbanTurf and RFID Update, which he operated from Brazil, Chile, and Puerto Rico, and associate publisher of FierceFinance. He specialized in direct marketing at MBI, facilitated MIT Sloan School of Management programs, and has been featured on CBS. Vega graduated with honors from Harvard University, where he was on the board of Let’s Go Publications and directed business programs involving McKinsey, Goldman Sachs, and Harvard Business School faculty. He is also enrolled at the Stockholm School of Economics.

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One Response

  1. Tradermark said

    Rocky,

    inverse trade between dollar and S&P 500
    great chart here; literally a 180 degree switch between April and october

    http://www.fundmymutualfund.com/2009/10/inverse-correlation-of-stocks-and-us.html

    on October 16, 2009.

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