Capitalogix Commentary 12/13/10 - Is the Rally Fake?

I'm in Indonesia finishing a business trip. 

 

While there, this sign caught my eye.  A fake Obama urges users to buy genuine Microsoft. 

Meanwhile, Obama and the Fed Declare That Market Gains are Genuine.

Here is a chart showing that the Dow Jones Industrial Average is trading near its recent highs.

Time will tell if the rally holds.  Many traders are happy that the markets have worked-off some of the over-bought condition without a major pull-back from recent highs.  It seems like a healthy base for a Santa Claus Rally.

Business Posts Moving the Markets that I Found Interesting This Week:

• Mixed Messages: Will the Real Warren Buffett Please Stand Up? (HumbleStudent)
• Perhaps the Flash-Crash Taught Exchanges Something. (Bloomberg)
• As Prices Rise, So Do Questions About Commodity Speculators. (Economist)
• Study Claims Twitter Mood Predicts Stock Market Changes. (HuffingtonPost)
• BusinessWeek's List of America's Best Young Entrepreneurs. (BusinessWeek)
• More Posts Moving the Markets.

Lighter Ideas and Fun Links that I Found Interesting This Week

• Re-Inventing Libraries to Remain Relevant in the Digital Age. (LATimes)
• Color E-Ink to Comes to E-Readers. (NYTimes)
• Preparing for the Supercomputer War with China. (KurzweilAI)
• Twitter’s Official Analytics Product Has Arrived. (Mashable)
• Portion Size, Then vs. Now. (DivineCaroline)
• More Posts with Lighter Ideas and Fun Links.