Do NOT...

I repeat, do NOT take a Citi-isn't-going-bankrupt-rally as anything other than what it is. Shorts are done with their positions in Citi. They will be covering today. There is a small reduction in the counter-party risk for the other financials. Therefore, they will head higher too. But that will be about it. Friday's rally had very little to do with the Tim Geithner announcement, in spite of what the media says. It calmed some fears and relieved some uncertainty. But the 500 pt. pile on was a little glimpse into the amount of fear that still truly exists in this market. No bull market ever does that.

What if you were a trader in a horrible bear market, the likes of which we haven't seen in decades? What if you got a 10% pop in 2 trading days? Would you take some off the table? I know I would. That is what I anticipate the pros are going to do today. I wouldn't be surprised to see the market end the day lower.

This is a bear market. It works in the reverse of a bull market. When bull markets go higher, they need healthy pullbacks before retrenching and going higher. The same will go on today. We head higher and then retrench before going lower. It isn't the end of the world as long as you know what to do with it. If you jump in thinking this is the bottom, you will be in for a healthy dose of humility. If you use this as an opportunity to take advantage of some weak sectors and buy some puts on the cheap, you will probably be rewarded. Tread lightly here. Until next time, stay low risk.