"Richard Russell, long-time publisher of the Dow Theory Letter, calls the latest uptick just a "tradable rally" in a secular bear market. But he's not really sure why:
"Maybe it's time for the market to make mince-meat out of a large portion of shorts that are in this market. Maybe it's time for the bear to give the battered bulls a little hope. Maybe it's time for Mr. Bear to bring in a fresh batch of investors who believe that we've seen the end of the bear market."
When bull starts, no loud bell rings
Translation? It's a sucker's rally! Bears lure long-term investors back. They start buying. Only to lose more money later when the market drops further in this "secular bear market."
If true, the best strategy for a long-term investor in a "tradable rally" is to do nothing, forget stocks and hold tight to your cash. "