Why the Heck is the Market Rallying (in three simple charts)… and How Should I Play This ?


  • The S&P 500 has rallied 27% from the March 23 lows
  • The fiscal and monetary stimulus has been much more rapid and significant than anything we’ve seen in prior recessions. This is a strong technical rally, and I wouldn’t fight the Fed.
  • Bear market rallies … upticks during periods of depreciating asset valuations, usually driven by short squeezes and compounded by momentum trades … have happened before. I looked at three