In my September 21, 2007 essay entitled, "Where the Market's Headed," I said that I expected stock prices to rally into January 2008. I rarely make predictions, but I did based upon the facts cited in the September essay.

My prediction was looking pretty good until October 12th when the rally stalled; then stock prices nosedived the following week. After a bruising sell-off last Friday, I admitted I had to go with the flow and became bearish. But I never said the market couldn't recover and rally into January. I felt the spark for such a rally could come from the Fed. They're meeting next Tuesday and are expected to lower the Fed Funds rate again on Wednesday, October 31st. If they lower rates 50 basis points instead of 25, as most experts expect them to, the market will take off like a bird. (Whoops, there goes another prediction.)

But guess what? It appears that we didn't have to wait for the Fed's decision to get the spark the market needed. It came from blundering old Microsausage of all places. They creamed their earnings forecast and raised guidance. Can you imagine that? The market is soaring as I write this essay and the gang on CNBC is acting like stock prices are going to the moon. Well, don't bet on that. There are still plenty of things the Bears can talk about to shoot prices down. But it feels good to have a solid up day compared to what we've seen for the last month.

Therein, lies a problem. The biggest up day we have had prior to today is September 18th, the day the Fed lowered interest rates. Now this leaves me to wonder, Has The Rally Resumed?