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Are The Bulls Charging?

The stock markets have been on a tear for the last three weeks or so it seems. In the last fourteen trading days the DOW has finished in the green for ten of those days. Even though the DOW sit at 8761.42 and was as high as 9000 on Monday, there has been a charge from the bulls that makes you wonder if we have reached the bottom.
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I don’t believe we have, but I do like to think that we did.
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The commodity sector had a beautiful day today and that typically shows that the bottom is near if not here. Basic materials as a whole gained over 5% today with coal leading the way with a gain of over 15%. It goes to show you that the analyst and the “expert” either don’t know what’s going on or that they are not telling us average traders everything. I’ve listened for the last month to them report that commodities are in the tank and will remain there for sometime. So why the rally today? I wish I knew.
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The steel industry has been dropping like a lead balloon, but Cliff Natural Resources Inc. (NYSE:CLF) gained 18% today and is up nearly 38% in just one week. Steel Dynamics Inc. (NASDAQ:STLD) gained 15% today and is also up nearly 60% for the week.

With signs and gains like these, one would think the worst is behind us.
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In the last two weeks we’ve heard that the recession is officially here, so I’m lead to believe that it’s not over. I’m expect a big pull back in these prices as the profit takers come in and remove so of their capital. I’m also looking for the DOW to drop back to the 8000 level in the near future.
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If my readers have any insight to share, please do so in the comments to help enlighten me in any way.

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