We’re comforted by the fact that we’re in good company in our bearish stance. Stansberry and Associates’ Jeff Clark left the party when the S&P 500 crossed over 855. He says there are three brutally bearish sell signals right now:

One of the things I have been asked, and have seen in headlines over the last week, is whether or not this rally is for real. My answer? It’s too early to tell.

I don’t say this to brag but, damn, my readers have been making some money lately! 

How can a chart tell you if we’re in a bull or a bear market. The secret is understanding moving averages, says Dominic Frisby in British finance magazine MoneyWeek. Dominic says moving averages “are a gloriously simple trading tool that can help clarify where you are in the grand scheme of things.”

The first quarter of 2008 is complete. Boy has it been brutal. As of this writing, the Dow Jones Industrial Average dropped 7.53%, the Nasdaq Composite Index corrected by 14.09% and the S&P 500 retraced 9.88%. While many people lost money on American equities, Death Cross Trader subscribers came out well ahead of the game.