The Dow Jones Industrial Average rose about 1,000 points from last week’s low.
The rally also marked the first consecutive three-day, greater than 1% daily moves in the Standard & Poor's 500 ETF (SPY, Financial) since October, 2011.
Is this stunning reversal of the past year’s decline to be believed?
Could it simply be attributable to short covering? Before dismissing the move as unmeaningful, why not go back and look at what took place since August of 2011?
Investors who bought right after the turn in 2011 were well rewarded.
Insider action has been very bullish. They are typically the "smart money" crowd.
Put option buyers, who are usually wrong, took huge positions in mid-January.
Waiting for another major selloff before reinvesting might prove to be costly.
Don't bet against a further rebound.