While I expect the bear market rally to continue for a short while longer there is no evidence that I can find whatsoever that we have reached a final bottom in this once of a lifetime collapse in equities and the economy. Here’s what you have to remember about bear market rallies; they happen incredibly quickly and the resulting move higher can be 10-20% in just a few days to 3-4 weeks. So, if you don’t get on board quickly you will find yourself buying back into stocks just as the bear market is about to kick back in…and that first move back down is typically a very scary, several hundred point, one day drop that signals the bears are back in charge.

There are two primary reasons for these lightning fast bear market rallies. One: when investors fear that the “train is leaving the station” and that a new bull market could possibly be getting underway, nervous investors jump back in as quickly as possible. It’s that fear of missing the bottom that can bring $100 billion + in liquidi...