Market Rally: Will it continue this week?

That is the big question at the end of today's trading. The Dow went up 379 points to close at 6,926. The S&P 500 went up 43 points top close at 719. This is was especially good as many had seen the S&P needed to get up over 700 again. The key level for the S&P this week would be to go over 740, as many shorts would get rid of their shorts very quickly. They haven't been nervous in a while. The ETF Ultra Short triple play, TZA lost over 20% today, while another ETF triple play of the Small Caps, symbol TNA, gained over 20%.

The Volume was very good and a number of stocks went back above their 20 and 40 day moving averages all in one day. I think the rally will continue just because it has been long awaited and many do not want to sell into it until they have gotten back some of their losses. I would not sell into this rally too soon. The Dow could go all the way above not just 7,000 but 8,000 as well.

Gold dropped again today, down 22 points closing below $900 to finish at $896. This is very bullish for stocks. I also have noticed an increase in trucks on the highways the past 2-3 weeks here in the Bay area. This has been a good sign although the sample size is quite small and not representative of the economy in general. But it was a hopeful sign. I will be traveling to Las Vegas tomorrow and I will see first hand how Vegas is fairing. I expect to see some there watching the NCAA March Madness basketball tournament on the jumbo screens.

Rep. Barney Frank today said he believes the SEC along with Congress would reinstitute the Uptick rule. And Fed Chairman Bernanke today said he believed the recession would be over in the second half of 2009.

All in all it was a terrific day to help my portfolio and I expect it to continue. Don't be disheartened if it drops during some time tomorrow. This rally has legs and I do not believe you will be disappointed!