The Rally Continues

The stock market lost some ground today, but it stayed in positive territory for the week.

That's the best such run since last May, writes Alexandra Twin of CNNMoney.com, but Twin reports a warning from Dean Barber at Barber Financial Group.

"[T]here is momentum here in the short run," Barber said, "but this is the classic bear market rally and investors need to be careful not to fall into the classic bear market trap."

Twin summarized the situation pretty well.

"[T]he advance has been based on hope that the recession will soon end because a lot of money has been thrown at the financial sector and the economy," writes Twin. "However, fundamentally, the economy remains in bad shape, as do the state of corporate profits."

So, I guess the bottom line is this:

It's fine to hope that this will be more than a temporary rally. There's always the possibility that it really is.

But those who have spent their adult lives observing the stock markets say this is likely to hit the wall — probably in the near future.

So enjoy it while you can.