The bears overstayed their welcome and got their lights punched out today.
Breath-taking rally today with the Dow up nearly 936 points and the Nasdaq up 194 points on the government's new plan to stimulate inter-banking loans. Today's rally is confirmation of the reversal that started last Friday. Many people are thinking we're going up too far and too fast and likely headed down as soon as tomorrow. I don't think so. You gotta respect today's rally. If we were down this much, you'd be afraid to buy. So you should be very afraid to be shorting here. The tape is saying we're going higher and all dips ought to be bought from this point on.
The details of The Plan will be announced tomorrow and I think the financials, which rallied with a little bit of hesistation today, are gonna fly as a result. Two ETFs to look at are the XLF and UYG. Individual financial stocks just aren't safe in this environment. Anyone of them could be the next Lehman, so you're better off getting the exchange-traded funds that give diversification.
Trend analyze XLF and UYG now...
