Ridiculous

I haven't commented in a week as I've been busy protecting my clients assets.  The selloff last Tuesday put us in dangerous territory as I noted in my most recent post.  Here it is a week later and we have a rally 4% rally following the 3.5% selloff yesterday.  This amount of volatility is ridiculous.  As I write this the S&P is up 4% at 773 a few minutes before the close.  This puts us a little lower than the close last Thursday.  Almost as if nothing happened in between.  This is where we are all greatly challenged.  I listed to all of Bernanke's testimony today and didn't hear anything new.  He seemed confident, but then his testimony was littered with enough "if's" and "when's" to cast doubt on anyone within earshot.  It seems his pronouncement that the banks will not be nationalized is the catalyst for the rally, even though 40% government ownership of Citigroup seems quite like nationalization to me.  I think the lesson learned from the last week is that the "market" is hypersensitive to anything that resembles news.  On the technical side the higher close today will only be relevant if we can string a few together and break through resistance at 800.00.  Then of course we'll need to stay above that area for a while before we can call this a double bottom.  Play it cautious and beware the volatility.