Psychology of the Upcoming Week's Earnings & Economic Data

The Psychology of the Call team (POTC) wishes you an April filled with greater health and wealth, greetings!

The S&P 500 index climbed 26 points, or 3.1% for the week. A full 8 of those 26 points, or almost 1% came as a result of short covering in the last 23 minutes of Friday. The prior week saw a powerful 48 point climb, good for a 6.25% S&P gain. So for the last 2 weeks we've witnessed an extremely aggressive technical bear claw back nearly 13% of the 53% implosion from last year's high of 1,425 to the early March lows of 666. Although POTC is still VERY much holding on to its thesis of being in the midst of a destructive bear market rally, we are heartened by the fear exhibited by the short money. Yet we believe the cause of this short covering is based on technical and political reasons more than fundamental balance sheet/supply and demand improvements, thus great caution is still urged. See if you agree with our take...

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