Some are saying this is a bear market rally ,but the price of oil is still strong

That could be but the bear market rally can go on for quite a while.I think markets are looking ahead to 2010 when they expect things could be some better.

But that will not say if companies could have some better Q's ahead it will hold on for the next years.That's why I think the overreaction to the downside is now coming to a more realistic level .In bear markets you could see nice spike sometimes up to 100 % and then back down.

The Japanese Nikkei is one example of that.After hitting old time highs in the '80 they index never topped.But there were nice rallies up and down.So I'm afraid that after the Dow and most other world indexes have made their tops in 2008 it will be a top that will take long time to smash again.

Like I read it's also in Canada and the US the same like here .Car makers are struggling even in Belgium outlook is grim for automotive sector.Same for steel.Arcelor announced it will cut production the half world wide .That means something.Just heard today one of our banks is again in trouble due to his overseas exposure in US MBIA obligation company.It makes people think about the amount of bad credits that is circulating worldwide.So last climb of the stock markets was IMO an artificial climb based on debt .So to reverse such a heavy loss in money is not that easy .

We have positions in oil related companies.They could do well if the price of oil stays at a level they could make good cashflow.But the believers in the peak oil ,which is of course an event that will happen because it's a source that can't be pumping out for ever ,could be waiting for longer time then first predicted .The automotive sector will never be like it was and IMO therefor they will try to shift cars to other tecnics and driving in mixed fuels or hybrid engines.That could bring new kinds of economies on line and could lead to nicer earnings later on but this will not take place in one,two ,three.

I hope oil could go to a level where oil companies could make money but that supports a grow in economy to.So a rapid climb I'm not in favour for that.