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Second quarter started in style

04.04.08

According to some longer term research, Tuesday’s rally in the US was the best start to a second quarter for seventy years, which might be an irrelevant statistic but in these days of doom and gloom it makes a pleasant headline if you are a bull. Indeed, the more we hear about recession, credit crunch, house price falls and so on, the more the contrarian in us feels comfortable that the short term path of equity prices is up.

Before anyone emails to question how it is possible to be trend traders whilst as at the same time taking a contrarian view, it’s worth pointing out once again that the smart money has been buying not selling in the last month or so, especially on days when the indices were very weak, and you need to look below the surface to see what is happening in terms of volume as well as price to anticipate the trends.

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