The Dow had an up 400 day, mostly on the news that the Fed was going to inject $200 billion of liquidity into the market. This gave hope to many investors that the worse might be behind us and that it was time to get back into the market.
I kept my money on the sidelines. I'm not sure how this Fed action at all solves the fundamental problems that caused the market to tank in the last few months. We are heading into a period where we need to pay for the excesses of the last few years. We can delay it, and that is what the Fed seems to be trying to accomplish, but in the end, someone is going to have to pay up.
The market reacted to relatively weak news, and this stimulated others to jump in not to miss the boat. But when the smoke clears people are going to realize that the fundamentals just aren't there.
Take this opportunity to get rid of any stocks that you have been wanting to get rid of for a while. Days like this don't come by too often and you have to take advantage of them when you can.