Market Thoughts

What a rally?? Wow, looking at everything today I think it could have some legs to it. We ended very strong on huge volume. Also many talking heads on CNBC are doubting the rally which in my mind means it could continue. Finally we have little important economic news and in this mode all news is turned into good news. The second largest shareholder of Bear came out and said he had not sold any shares and the stock pops $1.50 afterhours. Great, it is the same shareholder who bought in over $100. Tomorrow the CEO of Bear Stearns will be on CNBC before the bell opens trying to calm the waters. People will probably listen to him and it will cause financial firms to continue to rally even though it is the same CEO who has driven Bear into the ground. Retail numbers will come out weak but everyone will be saying eww it isn't that bad. My point is that I would not be surprised for the Dow to rally another 400 points or so over the next week and shorts will be sweating bullets. I still think absolutely nothing fundamentally that actually matters has changed. It may just take 4 to 6 weeks for people to realize that again and people start selling aggressively. I am not really trading any of these thoughts though I started increasing some short exposure today. I think I was probably early but you just have to be a seller with days like these and a buyer when you have down 400 point days. Only thing that makes you sick enough to know your probably doing the right thing. :)