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Each morning ritual was to switch on and connect to Etrade to get the results from indices all around the globe and start to do battle with the portfolio. The adrenalin would increase as 'Coffee Chill' attempted to calm an inflamed stomach as I grasped with news, gossip and movements in different industries to try and grasp what was going on! Make a move, buy low and attempt to average on poorer stocks or just take profits.

Well this morning had me beat..... looking at what has happened since January 1, I suddenly realised that the majority of the stocks on the american equities markets were below their 200 day moving average. The indices are moving up on a low volume of stocks and the mirage is just that ... it is a bear market .... pure and simple a bear market that is in a denial phase! Denial as no one wants to admit the simple fact that a bear market is in existence!

I feel that bulls will soon have to turn to bears and the markets will have the guts kicked out of them even more as this realisation comes about. Between now and the end of October will be interesting times as we (and G7 countries) are experiencing a slowing economy.

The recessionary impact will be mild. Equities worldwide will have to take a bigger battering and the end result will be a feast of cheap and well valued stocks.

How long will it last?

Depends on the States and whether they can overcome political pressures to concentrate on economical ones!
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