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Saturday, August 22, 2009

Week in Review: The Stock Market Rally, Recovery, and the Economy (PODCAST)

"Wall Street people learn nothing and forget everything." - Benjamin Graham

Welcome to the Week in Review!

The Stock Market climbs higher still ...

And for some reason? Talk of "recovery" is being linked to this stock market rally.

After our 'market review', I'll discuss that in this weeks "Week in Review Podcast". Just click play !

(Podcast Included. If you're seeing this entry elsewhere and cannot play the podcast? Click this link to go to the exact podcast entry ...)



Click here to Download this Podcast

Here is the link to the discussion with Mark Douglas that I believe is so key for new traders to review.

It discusses what I have mentioned many times:

"It's not about the one trade. It's not about this trade. It's about the many trades"

Now, moving on to what I discussed later in the podcast? Here is a picture of the current Unemployment Rate in the United States, since talk of recovery began:



Here is a picture of the Unemployment Rate where I live, in Michigan, since talk of "economic recovery" began:


If anyone could possibly point to a credit-led recession where the recovery began before unemployment began to improve? Hey, I'm all ears.

Just remember. The actual, working economy? Is not the stock market. And the stock market? Is not the actual working economy. Eventually, fundamentals and the data meet. But if we remember our recent history of 1999? The stock market may just take it's sweet time meeting up with those fundamentals.

Especially on a rally, that has less and less volume as each day passes.

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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