Despite a seemingly endless tide of bad economic news and forecasts, Canadian stocks experienced a sixth straight day of gains yesterday.

The recent rally on the TSX has raised the index 14 per cent from its pre-Christmas woes.
Having closed yesterday at 9,472.09 points, the market lows of November (when the TSX dropped to 7,724.76 points) seem to be fading into the past.

But with war in the Middle East and the national economic outlook even grimmer today than three months ago, many remain wary of branding this recent rally as a return to the bullish days of yore.

“We’re certainly not out of it yet,” says James Mar­ple, economic forecaster with TD Economics. “Th­ings in Canada will get wor­se before they get better.”

Oil prices, while up, remain volatile because of the conflict between Israel and Hamas and economists are forecasting another 22,000 jobs lost in the month following the sharp drop of 70,600 in November.