That’s the big question now that the Stess Tests are now over.  With the SKF ip nearly 15% on Friday, financials can’t keep running up at such a blistering rate can they?  One would not think so but many say that the rally is far from over.

It’s very interesting to see such a divide between the bulls and bears right now.  The bears seem more sure than ever that we’re heading quickly towards a free fall in the market because we can’t have a 30% run up in this short of time without a correction.  The faster rise, the more violent the fall, right?

The bulls say that because things really are improving, this is much more than a bear market rally.  Yes, the market may have ran up 30% but it’s down much more than that. over the past year so one could argure that it’s a larger correction than it is a short term rise.

I’m in the bear camp but I, along with the bears, have taken a hit because I have been forced to cover a few times since the rally.  I’m holding on to my stance, though, that we will eventually correct.  Probably 5% or more but so far, I’m not feeling good about how things have turned out for my theory. 

Today looks to begin down a lot.  If it happens, is that a sign that a correction is beginning?  It’s too early to tell but at least at the beginning of the day today, it looks like I’ll get some money back on my short positions.  Isn’t the market fun?