Are we starting to see some light at the end of the tunnel?

[Fmr. Pres. Duke]

It depends who you ask. The good news is that the banks finally seem to be out of the dark, for now, with Citi announcing this week that they do not need more federal money and that they would make a profit this quarter. Bank of America announced they need no more federal money either and will be profitable for the year. Both of these signal a market rally for now.

Are we out of the woods? No, but even Obama admitted today the crisis isn't as bad as we once thought. If the financials can get turned around, we could recover faster than we thought.

[Fmr. Pres. Duke]

Well, I'm going to try to make as much money as I can off this rally, whether it be a bear market or sustained one. For the first time in a while, we are finally getting a stream of good news coming from the banks. Reserves are up 20% in some cases. They are not in as dire straits as many of us thought.

A lot of this now lies on the Obama Administration's handling of the situation. If they take the right side on market to market and the uptick rule, this thing could sore for the next few months. If they choose to continue to beat the depression drum and scare the public to push through their agenda, then we will be back down in the 6000s or worse. I liked that he admitted we weren't in as bad of shape as we thought. It's a good start. 

[Fmr. Pres. Duke]

THe charts still have this bear market rally lasting through Memorial Day before we see a major sell off. I bought 1000 shares of Citi at $2.15 and hopefully it will ride the wave of euphoria for a few days so I can make a nice profit. I'm not confident, but I think we will see some sort of bounce. The fundamentals say we should for the time being. Tomorrow we should get news that market to market is going to be eased. A lot of good news is coming out right now that is pushing the market up. The DOW was off today, but BAC and C were up 8% and 30% respectively. If C goes under, I lose about $3,000, but if it goes up to even $6 or $7, then I've made enough to where not having a summer job isn't do bad.

[Fmr. Pres. Duke]

I've averaged down my Citi stake now and am long on BAC. I think if M2M is eased this week, the stocks should jump up. The charts say we'll be in this bear market bounce till Memorial Day. Play comeback while you can! I'm up 24% this month so far on my portfolio.

[Fmr. Pres. Duke]

Right. If we go by median housing prices, we are still about halfway to making it back to where we should be. I couldn't believe how expensive housing had become until I saw the charts.

[Fmr. Pres. Duke]

This rally may be over. Bloomberg is reporting that the GDP will be worse than the Street forecasted. It will be -6.6% instead of the expected -6.2%...

Good thing I was out of C today. I'll probably dump BAC tomorrow if I still have a profit at $4... then back to MO for the return of the bear market.