TSG – The mother of all short squeeze rallies?

Dear Trader,

TSG Stock Market Letter
Week Ending July 18, 2008
Topics Discussed This Week:

* Stock rally – a real reversal or a dead-cat bounce?
* Leaders take big hit
* Earnings for Q2-08 deteriorate
* Builders get more pessimistic, starts get NYC spike
* Troubling Treasury trend
* The mother of all short squeezes
* Snapshot of the larger picture … Dear Trader,

TSG Stock Market Letter
Week Ending July 18, 2008
Topics Discussed This Week:

* Stock rally – a real reversal or a dead-cat bounce?
* Leaders take big hit
* Earnings for Q2-08 deteriorate
* Builders get more pessimistic, starts get NYC spike
* Troubling Treasury trend
* The mother of all short squeezes
* Snapshot of the larger picture or making sense of the rally
* Rally real or short covering bounce?

Stocks rallied this week and it was the first time we have seen
all green on the index table since May 30. But stocks were way
overdue for a bounce and the question remains, how much of this
week’s rally was driven by short covering (see below)? But at
least, some of the power of the stock rally was powered by
falling oil prices, as a barrel of black gold dropped below
$130/bbl this week for the first time since May 30.

Is the worst over or was this week’s rally a temporary respite
from the storm?

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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 Matt Caruso’s INTERMARKET REPORT, please see
http://tradesystemguru.com/content/blogcategory/35/69/
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