The 10% “fat finger plunge” last Thursday created one of the most violent stock market corrections in history. The move was unsettling for investors, who are slowly getting more comfortable with this recovery after the massacre of 2008. Credit Crisis Part 2 was avoided thanks to the quick and decisive action of EU and the IMF to contain the death spiral of Greece and its pigpen friends. While there will be more bumps in the road in the months ahead, this North American economy keeps picking up steam which should lead stocks much higher.
Day after day, we are getting more evidence that a forceful “V’ shaped recovery is taking place. Two very positive data points were released today. The U.S. trade deficit, which is one of the best barometers of global economic activity, showed March 2010 exports 20.4% year over year and up 2.8% month over month. Rail car traffic during April 2010 improved 16% versus April 2009, the highest year over year gain ever. Rail car traffic is still down 10% from 2008, but if the trend continues we should be back to pre-recession levels by the end of this year. All aboard!