Well, today the Dow Jones had it's best day since the 1930's.  Up 11% or so (over 900 points).  That is definitely a big relief from the last 2 weeks of pure downward spiraling into the abyss as many analysts have referred to this financial crisis which some have stated could be the worst recession since the great depression.  So where does this leave us and where will we go from here?

It's very hard to say exactly.  In the near short term we will undoubtedly have a rally that could go as high as 25 to even 40% higher from where its bottom was on Friday (Dow of around 8500).  But it is important to keep in mind that it is still very volatile and there are several more shoes to drop.  As anlaysts and economists are now stating that there is a 90% chance of a recession (I think we are already in a recession right now) and with credit card defaults and car loan defaults on the rise along with unemployment and more it could easily go back down again.

I believe that it will be a double bottom pattern and then we will start to leave this bear market.  There will be several months for this double bottom to form and it probably won't be over until next summer or so.  This is not an exact science, but with the other recessionary problems I mentioned above the rally will cap out and then the major indexes will revert back to where they were last week.  They may not revisit the 8500, but they will be in that range.  They could even go a little lower, but I think the market has basically bottomed.  With the formation of the double bottom we will inevitably revisit the area of last week again and then only after that will a bull market rally return in the stock market. 

Do you have cloudy and ugly headlight lenses that make it hard to see when driving at night?

Keep in mind, many experts are calling for a very slow or even sideways movement for a few years so don't sit and think that we will go back to 10% yearly averages for the major indexes for a while.  This is a time to be cautious and it is a time to do what the others aren't.  As the greatest investor of all time Warren Buffett has stated numerous times you buy when others are selling.  Many stocks are at fire sale or even better pricing.  If you have the cash to invest now is the time.  Be wise though and do your homwork.  Do not invest in companies with outrageous amounts of debt, bleak outlooks and more.  Watch analysts and stock market shows like Cramer's Mad Money and Fast Money, but remember as Jim Cramer has been wrong many times lately - look at the balance sheets.

Do the homework.  Warren Buffett made on average $242 million per day during the past few weeks when everyone else like Cramer and the foursome on Fast Money were chalking up huge losses - why?  Because he invested in sound companies and buys in when prices are a great bargain.  He also looks for risk and a margin of safety.  So once he makes a position he can sleep soundly at night.  He does not invest in anything he does not know.  Cramer spent several days over the past year talking about Wachovia and their CEO and how great he was.  It doesn't matter how great the CEo is when the company is drowning up to its eyeballs in bad debts.  STay away from stocks and companies where the risks far outweigh the returns.

Do you wish you had clean, clear and younger looking skin like the stars of the red carpet?

As it's said over 90% of all day traders lose money.  Are you day trading?  The odds are against you.  Maybe you should switch to a less stressful long position and if you really want to sleep well at night get instant diversification with index funds.  Many have very low fees and managerial expenses so you keep a higher percentage of your returns.  Also if a sector drops you won't feel it as much.  Yes, when fire seems to fall out of the skies with apocalyptic weeks and months like the last one you may see your holdings drop 18% in a few days and think the world is ending, but if you invest for the long haul, have chosen wisely and have done your homework you will have seen that in the past recessions and bear markets are a normal part of the marketplace.  If you had invested in the market 10, 20 or even 50 years ago in the indexes or better yet with Warren Buffett (brk.a and brk.b) you would have done very well.  The same will be able to be said going forward - for a while, though.

Do you suffer from acne and want it cured and gone forever? Be acne free with a TCA peel from Bestskinpeel.com!

Why do I say that?  Because every bailout like this ($700 billion and counting) raises our national debt.  These bailouts do one thing - they push or avert the real crisis to farther down the road and they always seem to create another bubble or two (like the internet bubble, housing bubble and commodities bubble among others).  There will come another time in the near future when the next bull market ends and then we will probably not be able to bail our way out of that one.  As economics can tell you we always revert back to a mean and the problem is that we have experienced way too much upside over the last 20 years without enough downside.  There will soon be a time when we will revisit these same lows and I predict it will be in 2011 to 2012 after the next short bull market. 

There has been a great deal of research into the year 2012 and such and whether or not you agree with it it does stick out as a possible serious warning and it does all fall into play here.  This may sound weird to you - or maybe not - the Bible codes are seen as a way to sort of predict some possible events of the future and were actually used to predict the assasination of the Israeli prime minister.  They state that somewhere between 2011 to 2012 will be the most serious financial crisis the world has ever known.  That would make sense as when you plot a graph of the major stock market indexes from 1900 on ward till now you see a huge gain basically unchecked except for tiny little recessions and such (1987 and 2002 may not have seemed tiny if you experienced them but over the course of the past 100 years they are but small dimples in the charts).  What you haven't seen is areversion to take it back to the other side of the MA or moving average during this time. 

A reversion to the other side would mean a drop to like 3000 or so in the Dow Jones average.  It's not a matter of if but when it will happen.  Then there are other prophecies and such that state similar possible calamities in the future.  The Bible talks about this in the book of Revelations.  The Mayan calender ends in 2012.  Nostradamus and even the great Edgar Cayce (the sleeping psychic) went on to talk about a bleak future.  Now, I'm not going to go as far as to say the world will end in 2012 and proclaim the start of World War 3.  But I think that if you do the homework and look at the charts and histories of the stock market and its varios major indexes and then look at the astronomical growth of the U.S. national debt, you can put two and two together and figure this one out.  The stock market is due for a massive crash of unseen proportions and its just a matter of when we and the world can no longer afford to bail out the stock market.  Then it will be a reversion to the days of 1929 or even worse. 

Restore your headlights to new again and save hundreds over costly replacements with New Lite headlight restoration!

Watch for the coming double bottom.  Sell high into this rally then hold as it will return to a range near last weeks lows.  Then buy and hold.  But watch out for the next bubbles to start bursting and sell before they burst because that next bear market and recession will be unlike any other - we won't have the money to bailout the world and nor will all the other countries. 

Now it is important to note that this is not to be taken as financial advise in any way, shape or form.  These are just my own ramblings and musings.  Instead, for proper financial advice see your local licensed financial advisor.  Make sure they are a fee paid advisor and not commissioned based (commission based advisors will always steer you to products that pay them the most and are almost never the best for the investor - high fees usually equates to low returns - be especially careful to avoid any and all financial advisors that push whole life insurance plans as they are one of the worst investment vehicles in existance and basically exist to heavily profit the salesperson and the company - notthe consumer).  Always, always use a fee based financial planner.  They will present you on a non biased level products that will truly be the best for you.