Dead Cat Bounce rally near an end

1/29/07

Last week US stock market posted first week up since New Year began. With Fed big rate cut 75 basis point to kick in the retrace dead cat bounce rally, traders are focusing tomorrow Fed meeting results as well as the job data on this friday. At this time of market, rate cut does not help the Stock market at all. Earnings coming in so far has been mixed and reflective of the health of US economy. So, 25 basis point tomorrow, market down...even with 50 market still down. If there is 75 basis again, market will ignite upward around Dow 12800 but market will going down again within 2 days.
I personally just sold my long time investment(Mutual Funds) because the Dow stock charts show me on monthly basis that the long(started from year 1982) term trend line has been broken and more likely this bear market will last longer than dot com burst period. The reasoning is very simple because housing industry is far from bottom and our houses are biggest investment in human life time and this housing bubble burst cause the house market in the worst ever since us great depression year 1929. Good luck to people who still think US economy would get better quick and stock market will be bullish very soon.