Again I ask: What type of markets do 4% up days usually happen in?
I will give you a hint: it's not bull markets. Huge up days are most likely reactions within bear markets. I was pointing this out the last time we had a huge rally: What type of markets do 4% up days happen in? - http://caps.fool.com/Blogs/ViewPost.aspx?bpid=389185.
I was even pointing this out in my last post: Bearish Confirmation - http://caps.fool.com/Blogs/ViewPost.aspx?bpid=396519
There will be rallies to be sure. And some of them will be impressive. But like I was pointing out before, we get the most spectacular rallies as reactions within bear markets. And I now believe these peaks will be shorted, just as in opposition the last year and a half all the dips were bought.
I mention this now because today promises to be a another large up day. Spectuacular even. Which should make one skeptical of the "beginnings of a new major bull run" calls. Crazy days full of reversals and volatility are more often hallmarks of bear markets than bull markets.