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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (78631)	5/2/2008 9:34:41 PM
From: SouthFloridaGuy	Read Replies (2) \| Respond to of 116555

Market sentiment and oversold indicators were at levels not seen since 1998 or 2002. The rally HAD to happen. I still believe the commodity sector is going to see a super-spike. I have been gone for 2 weeks so I hadn't really had a chance to check my P.A. But after all the ga-ga over the commodity price correction, my P.A. it's still 2% higher than it was two weeks ago and 25% is in gold stocks (also in solar, metal miners, ags etc.). It may well last a few more months as rebate stimulus filters through. People cannot discount the rebate - a shot of 1% of GDP in 1 quarter is pretty massive injection. But make no bones about it, it is fleeting, and maybe even ill-timed given we're at the beginning of a multi-year contraction. A better remedy would have been a middle class tax cut. Extending the Bush tax cuts is imperative as well.