"You know what the news is-- in a minute, you're going to hear the rest of the story"- Paul Harvey

The mood of investors is changing. Sure, there will be more challenging days ahead, but the path that the markets take over the next few years will- in my opinion- be a much more favorable one for investors. Hold on, the Calvary is coming!

Its been a tough ride, and the solutions are taking a little longer than I had anticipated, but in January the Calvary will finally arrived, and their charge will be swift and decisive.

After yesterday's 396 point rally, stocks put on their biggest two day rally since 1987. The markets got a boost after the US government announced a $326 billion bailout plan of Citigroup.
The mood on Wall Street changed even more when President-elect Obama announced his economic team, and congressional leaders said an economic stimulus plan would be presented on his first day in office.

Yesterday, the DJIA was up as much as 552 points before a late day sell off drove the index into close with 396 point gain. These quick sell offs on the close are hedge funds shorting or redemption's, as well as mutual fund activity. Margin calls are killing the hedge funds and providing us with an opportunity to buy stocks on the cheap.

According to Bloomberg, S&P 500 companies are now trading at their cheapest prices in 20 years when compared to their historical earnings potential.

The markets rallied right out of the box this morning, and then Treasury Secretary Hank Paulson showed up at 10 am est. PE Obama showed up shortly after Paulsen, so we'll see by the end of the day how the markets react.

Keep in mind the stock exchanges will be closed on Thursday for Thanksgiving, and close at 1 p.m. ET on Friday in an abbreviated session.

My advice is to go enjoy the holiday, and get a jump on your Christmas shopping.

The Rest of the Story

The irritable mood on Wall Street and Main Street is changing. Thanks to President elect Obama, investors and consumers are gaining confidence. Some have questioned Obama's frequent appearances in recent days, saying that he is acting as President and he hasn't even been sworn in yet. To these people I say, "Thank god someone is trying to lead because we have been leaderless up until now."

My comments are not partisan. My comments are based on the fact that I cannot stand incompetence, and a lack of accountability during times such as these. Someone or something somewhere got us into this financial mess. Now someone somewhere is going to get us out. Along the way I hope that heads roll, people are thrown in jail, and the Wall Street investment banks that created this mess are never allowed to exist in any way shape or form in the future.

It's time to kick ass and take names.

The first place I would start kicking would be the investment banks. I would raid the corporate offices with the FBI and SEC. I would sue CEO's, executives, and traders to reclaim the massive bonuses they received over the past eight years. I would take them out of their offices in handcuffs, and parade them in front of the entire world.

The second place I would visit would be the headquarters and trading offices of head funds. Head funds are made up primarily of former Wall Street investment types who have over leveraged themselves to create turmoil in the financial markets. I would look for illegal short selling activity, and if found, I would close their operations immediately.

These two groups of manipulators have done the bulk of the damage to the equity markets. Some are obviously honest and legitimate, but the rest are no better than the criminals that run organized crime. In many cases they have been above the law because the laws put in place to regulate you and I, and do not apply to them.