Happy Easter

Today we celebrate the resurrection of Jesus who has demonstrated that there is no death. And while the markets have not died how much they can rise remains to be seen. The rally off of the March lows has given new hope to the faithful bulls and eased the pain of the many who have watched their 401k’s plummet to half their value in the recent past. What has become obvious is that the fall in the stock market was the result of a collusion between borrowers and lenders acting together to make liar loans on real estate which were then sold off with AAA rating as Mortgage Backed Securities. And while the worst of it may be behind us there is no guarantee of that and how long this recovery takes is also uncertain.

This past week the big gainer was the Russell 2000 small cap index up 4% followed by the EEM emerging market index which is also in the lead spot behind gasoline for the year to date performance. Click on table to enlarge.

We are finally seeing some green in the sector graph below in technology and basic materials. Success in investing may be more about being in the right sector than in picking the right company to invest in. Picking the right company in the right sector is the best way to go. I do not have an Elliott wave chart to share this week but will try to make that a regular part of my weekly posts. Click on graph to enlarge.