What's going on with the stock market?

I can't believe the stock market has been recovering so well for the past eight months. Companies have cut expenses but yet, there is no visible rebound in their sales. So like many other observers, I wonder what it is that the market is rewarding? Many pundits have said “be wary, there will be another big drop” in spite of all these dire predictions markets have kept on rising. Bad economic news, signs of unrest anywhere, haven't made a dent in markets that usually behave like yo-yo; instead, they've stayed their uphill course. This apparent recovery could have been good for investors who still see themselves as traders, but most of us who have been so scared by the recent free fall may not have the stomach to take the plunge into trading yet.

Ma belief is that market behavior might be the result of a relentless propaganda from the Fed and the rest of the financial industry. With most “retail investors” out of the game and only institutions playing the market to their advantage, there's now a call to the rest of us, to get back in and participate. We still need a bit more euphoria and then, when we finally get in, this new high floor will collapse to another low point, perhaps not as drastic as March 2008, but will nonetheless take another plunge. This I believe and is why I'm treading so carefully!