CHESSNOID

Today we had some good follow up on yesterdays up gain.  I expected it to go up again but wasn’t sure it would make it by the last hour.  You know what happens in the last hour: rally or plummet.

NEW YORK (CNNMoney.com) —

Stocks surged Monday in a broad rally as Citigroup’s massive rescue package and President-elect Obama’s picks for his economic team pushed investors off the sidelines.

The Dow Jones industrial average (INDU) gained 397 points, or 4.9%, after having been up 552 points earlier in the afternoon. The Standard & Poor’s 500 (SPX) index rose 6.4% and the Nasdaq composite (COMP) gained 6.3%.

The market also rallied Friday. The two-session gain of 891.10 points was the biggest two-session gain ever, according to Dow Jones. The percentage gain of 11.8% was the biggest two-session percentage gain since Oct. 1987.

The S&P 500 also saw its biggest two-session percentage gain since Oct. 1987, rising 13.2%. Its point gain was not significant statistically.

Is this the market bottom? Will we bounce back up to the market highs or at least recover half the 40% decline in the last 12 months? Probably not. We might even be overbought at this point and we might have some profit taking. It is good to see the indexes bounce off their lows.

The economy is still struggling and watching TV just shows you it is going to get worse before it gets better. I am wondering if we will have a market rally in the new year like we usually do.

I still play in the stock simulation site UpDown.com. They have a free money contest for November. Today was a good day for my account because I bought financial stocks at they all had a nice bounce day. I am getting better using those limit sell orders. Today a few were triggered but the stocks I have left which includes Citibank went up high but the sell amount I set didn’t trigger. If you want to play the market without the risk check out the site.

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