Markets are Pricing in a lot of Good News

http://www.ft.com/cms/s/0/2559e768-88f0-11de-b50f-00144feabdc0.html

I found the most enlightening comment to be regarding why there has been a rebound. A restocking of inventories doesn't exactly mean that the demand is there to sustain production:

"The rebound is based on restocking of inventories but, once that is complete, there are concerns about sustainability of growth in 2010 as the consumer remains burdened by high debt, rising job losses and sharply lower housing prices. "

Dow up nearly 500 on bank plan, rise in home sales

http://finance.yahoo.com/news/Dow-up-nearly-500-on-bank-apf-14720049.html

Be aware that the market reacts to two kinds of events: 1. Speculative and 2. Actual. This rise today is the former. The markets are up as a reaction to the government's bank "plan." We can see how well government plans fair when they are actually put into practice (eg AIG). While up swings in the markets can be good things, bear in mind that nothing, I repeat, nothing, has changed since yesterday. The foundations of our economy are still on shaky ground. Only time will tell if this government interventionist plan will solve this problem. I for one do not think so.