TSG – Correction coming?

Dear Trader,

TSG Stock Market Letter

Week Ending April 17, 2009

Topics Discussed This Week:

* Rally six weeks young…
* Leaders down… no there back up again…
* Earnings, still not real signs of improvement
* Treasury sales still falling, so are housing permits & starts
* Still in sell mode…
* Elliott Wave perspective on the SPX

This … Dear Trader,

TSG Stock Market Letter

Week Ending April 17, 2009

Topics Discussed This Week:

* Rally six weeks young…
* Leaders down… no there back up again…
* Earnings, still not real signs of improvement
* Treasury sales still falling, so are housing permits & starts
* Still in sell mode…
* Elliott Wave perspective on the SPX

This rally marked its sixth-week birthday this week. Since
hitting its low in the first week of March, the S&P500 is up 28%
with the Financials leading the pack. But that being said, this
and most other major indexes are getting really stretched
(overbought) with 89% of the stocks in the SPX index above their
50-day moving averages (DMA), which is the highest level since
mid-2006 according to Bespoke.

Sectors from Financials to Healthcare have performed strongly
since the March 9 bottom with Financials now up nearly 78% and
Consumer Discretionary a distant second up 40% over the same
period.

But a correction in equities is long overdue…

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