Today will be remembered as a historic day of trading for the US stock markets. The Dow Jones Industrial Average closed up over 1,000 points, the largest point gain in history.

I used this rally to sell aggressively out of some of the smaller, riskier stocks and keep money in the strong, high dividend yielding stocks that will surely weather the coming economic storm. This rally was surely pushed by short covering and could quickly reverse this week and continue a downward trend heading into tough economic numbers that are surely coming.

The movement is due to the coordinated global effort to stabilize the markets by financially supporting banks and ensuring that they will not be allowed to fail and thus cripple the global economy. However, I don’t think this will avert a large scale recessionary period that we will experience through 2009.

[tags]stock market, dow jones, nasdaq, rally, investing, shaun carter, recession, dividends, economy[/tags]