CHESSNOID

I wasn’t sure if my prediction would come true because the DOW was just hanging out at the +500 point range throughout most of the day.  In the last hours, the buyers stormed the markets and they went on a buying frenzy.  These are the market closing figures:

If you read my previous posts, then you know I called this one pretty spot on. It didn’t exactly break 1,000 points but I knew it would be the biggest point gain day in its history. Now the question is will it continue to go up from here. I think the rally was impressive but it was only for a day.

I know many investors are hoping this is the bottom of the market, but I suspect there will be a sell off within a week where we actually work our way past the 8,000 floor again. I know based on the numbers today, you wouldn’t think that is possible. Just remember we were over 14,000 last October.

Personally, I don’t think this is the bottom nor do I believe the problems have been fixed. The symptoms seems to be gone, but my guess is our economy is still headed down because of fundamental reasons. I missed out on this incredible rally and am sitting in cash because I feel it is too risky to put my capital in jeopardy in the short term. It was very difficult to be just a spectator today, but I am a long term investor and try to be disciplined. My guess is tomorrow we will have a minor pullback, but the numbers will zig zag every where.