10 REASONS TO BE BEARISH

1) RISING UNEMPLOYMENT RATE -once it goes past the psychological level of 10%, we will likey see some strong reaction in the markets

2) CONTINUING BANK FAILURES - Banks are continuing to fail despite all the talk about recovery, the latest being CIT.

3) INCREASING COMMERCIAL PROPERTY DEFAULTS - were up 200% in the period from Jan 2009 to June 2009 as compared to the whole day of 2008. Surely increasing commerical property defaults indicates that the commercial sector has not recovered.

4) INCREASING HOUSING DEFAULTS - foreclosures and defaults are still rising

5) EXPENSIVE GOLD - Gold, the safe haven for investors is at an all time high and just broke 1,000. If there is a recovery then why are investors still keeping their money in gold?

6) HIGH CRUDE OIL PRICES AND THE HUGE DIVERGENCE BETWEEN CRUDE AND NATURAL GAS - Natural gas is usually used by the manufacturing sector and indicates the health of the manufacturing sector. The fact that Natural gas is at an all time low while crude oil is at a high indicates the weakness of the manufacturing sector in an environment of growing inflationary fears.

7) ULTRA LOW INTEREST RATES - as long as the interest rates stay down, we can be sure that the worst is not over.

8) EARNINGS ESTIMATES & ANNOUCEMENTS - seems like a whole lot of companies had beat earnings but they had forgotten to announce that their earnings estimates had been revised to such a low level that it is impossible not to beat it. And most of the revenues of the companies had actually decreased YOY.

9) FRE, FNM, AIG & C - With only 4 companies making up 25% of the stock activity in the market, this market rally is too biased for it to be an accurate reflection of the economy.

10) LOW VOLUMES - market volume is still low and with only 4 companies dominating the stock market activity, the market may spike in either directions (usually down) when market volume returns.