700 Points

Top Line: At the open the market was greeted to the news that S&P downgraded GE's debt. This seemed to just make the bulls happier as GE rallied over 12% on the day as the Dow jumped another couple hundred points.

Let's see, the low in the Dow was 6470 late last Friday, the day of the jobs' report, which seemed to us to be the ideal day for an inflection low point. Today the Dow closed at 7170 which makes the rally in the last four days a sizzling hot 700 points well over 10%.

The market will have its moments of scary declines but, for now, we are fully engaged and expect a rip roaring rally for the next several months. We hope you are on board and have fastened your seatbelts, it will be a wild ride.

The problem is that the market has trained us all that rallies need to be sold so for some time that is what will happen. We don't think the selloffs will be very strong generally but they will be present. They will shake the confidence in the bull run.

So, what do we do? The easiest thing to do now is to relax. But, we may want to do some other things along the way. It's difficult to know exactly when a stock moves up so it's difficult to know when to sell each stock. Along the way we may want to play but we don't want to move too early on the run up.

We're going to relax tonight and enjoy the 700 points. We'll see what kind of selloff the market can generate. We like any early morning selloffs because that gives everyone a chance to "buy a little lower" than the day before.