The Bull Market Lie
After months of dire predictions from the various Financial Network Anchors, reporters and editors, these same people are telling us that the worst is over and we have seen the bottom of the economic crisis. Their reasoning is that the stock market has been rallying. However, a look at history will show that even in the depths of the most vicious Bear Markets there are rallies that often times bring the indexes up by as much as twenty percent before they reverse give it all back and tack on another 5 % on the downside just for good measure. The important events in March that caused this rally are not the Treasury Plan, or the announcements by banks that they are doing better. Stock market rallies in the middle of a prolonged Bear Market are usually caused by a beast known as short covering. This is when sellers of stock that they do not own begin to buy the stock to cover their position to lock in a profit. As they begin to buy stock to cover their short position it causes a short sq...