Is This A New Bull Market?Mike Swanson 15 April 2009A month ago when this rally began most people were skeptical, but now all anyone is asking is how much higher will the market go?
It is still down for the year, but now almost everyone is looking for the rally to continue from here – with many thinking this may be the start of a new bull market. Many people are wondering whether or not this is the start of a bull market and whether they should buy now. Most guests on CNBC have been gushing over the market rally and some of the recent earnings reports. My view is that it is one thing to try to play a rally like this but another thing to buy into it as an investor who wants to buy and hold. In no way do I think it is time to start to do that yet. Let me show you why. One thing that has characterized the market the past few months is extreme volatility. You know this yourself from the wild swings we have seen in the market, but it also shows up in several key technical indicators that I follow closely. For instance the VIX, which measures the premium being paid for volatility in the options market, has been trading above 40 all of this year – something that is has n
