Stocks rallied today, across the pond, for the usual imagined reasons markets rally or fall. John Candy's character in "Stripes" played poker with a kid who was, well, slow. He taught the kid how to play poker. "Let me see your hand," Candy's character said. After looking at the cards, he said, "You know what I'd do? I'd bet it all. Bluff. Come on!" Of course the kid did, and lost.
History does not repeat itself, but it does rhyme. I read that on another blog to which Paul's blog is linked. Well, after the Crash in October, 1929, stocks rallied, then dropped. We are in for a period of short rallies followed by drops. The analogy is to an earthquake. There is the main quake, then a series of aftershocks.
So my advice? Be a geek, get on line, watch what the London markets do, but, generally, sell short. The market is in bear mode.