WOW!!! The Dow was up over 900 points today. Everyone is excited. This is good, isn't it? Is the economy starting to recover? Will the foreclosures and layoffs end soon?
I don't want to be a pessimist, but I don't necessarily think so. Of course an increase in the Dow is good, but this many points? To me, that points to volatility, and that can lead to a big decrease the next day or the next week. I'd rather see the Dow rise or even fall only 10 to 50 points in a day on a regular basis. That would really point to a recovery and some stability.
The rise in the Dow is encouraging, maybe we've turned the corner, hit the bottom, etc. I hope so, but I'm not celebrating just yet. I'm looking forward to a few weeks of moderate gains, although the huge swing is sooo exciting.