Want to know where the stock market is headed?

April is a special month because all the good little workers get to make their last minute 201K deposits. You can be sure the corporate advisors are telling them to put their money in stocks.

So, unless something major happens in the next 2 weeks, the market will make it's climb toward the 200 day moving average.

It could be a neck breaking pace because it will take another 1300 points to get there, but as we've seen the last few weeks it's certainly doable.

The question in this game of chicken is who will move out of the way first - bulls or bears.

I went back and looked at April of 1930 (of course there were no 201k's or even 401k's back then) but the market rebounded strongly up to the 200 day moving average during the first two weeks of the month.

But the rally failed after the second week, and we all know what happened after that. It took 20 years to get back to the 1929 levels.

This could be the bulls last hurrah, so expect nothing but happy news for the next two weeks until tax day, or like today, as the AP so aptly put it "Hope beats bad news".

After that, when selling resumes, you'll see the bad news trotted out daily to explain why the latest money added to the 201K's has suddenly disappeared.



As they said on South Park...."and it's gone"

edit:forgot the link to the chart - here's where we're headed.

[link to moneycentral.msn.com]

Last Edited by Hiro Protagonist on 04/01/2009 05:05 PM