We move from panic to euphoria - we are all safe!
Or are we? I am saying use the euphoria as a way of reducing your exposure. All that has happened is that the accident victim has been put on life support - but it still has terminal cancer.
The fallout from credit cards and auto loans has not even begun.
The banking system is not in a position to lend.
The old structures that relied on cheap and easy credit and cheap and easy oil are still dying
The price of assets that have to be sold at fire sale prices will continue to drop
With low job security, high energy costs, and tight credit - shopping will diminish
With the central banks "printing money" the dollar will buy less oil and food from abroad and so energy and food costs will continue to rise.
None of the fundamentals have changed for the better. Reactive bounces up are a great opportunity to reduce your exposure to the market