The market leap yesterday after the change in lending standards that the Feds has to the bank. This has certainly been good news. But has the market reached bottom?

Nobody has the crystal ball, but likely it has not. There is still more bad news to come in the financial markets, especially with financial companies. So I would not bet on a rebound yet.

Some of the biggest one day gains actually happened during bear markets, so yesterday was no surprise with a lot of short coverings.

On the other hand, it is good to remember that rebounds often start about six months prior to the economy coming out of s slump. If you think the economy will do better during the second half of 2008, the rebound might not be far away.

Hang in there, keep the cash ready and don’t wait too long, since a lot of money is made during the first few months after the end of a bear market.

Please write me if you have questions.

Patrick