TSG – Stocks rebound on earnings hopes

Dear Trader,

* Leaders surge higher
* Q1-08 earnings – a few stars but earnings still weakening
* Housing data – still no signs of a bottom
* Bear market perspective from Japan
* Housing markets cooling around the globe

“Subprime was just a paradigm for the credit markets overall. Now in the corporate market, the shoe is just beginning to fall, and we’re poised for … Dear Trader,

* Leaders surge higher
* Q1-08 earnings – a few stars but earnings still weakening
* Housing data – still no signs of a bottom
* Bear market perspective from Japan
* Housing markets cooling around the globe

“Subprime was just a paradigm for the credit markets overall. Now in the corporate market, the shoe is just beginning to fall, and we’re poised for a major correction that has been coming for at least a decade.” Anders Maxwell, managing director of investment bank Peter J. Solomon Co., speaking at a conference on distressed investing in New York.

Stocks posted their biggest gains since February, mostly on some good and some not as bad as expected earnings news as the major indexes edged closer to new highs. But it was clear from the reaction to earnings this week that the market is again anticipating that the worst is over for everything from earnings headwinds to credit problems.

But is the worst really over?

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To read this week’s STOCK LETTER, please go to
http://tradesystemguru.com/content/blogcategory/34/68/
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To read this week’s INTERMARKET LETTER Monday, go to
http://tradesystemguru.com/content/blogcategory/35/69/
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