Dont get carried away. This is one positive day after weeks of utter destruction. Often when we watch stock trends you see whats called a “Dead Cat Bounce” I have no idea how the term came about, but it describes a sharp upward climb in the market after a huge fall. Market timers rush in assuming the coast is clear, drive up stocks despite the fundamentals for a short period of time then stocks sink again to an even lower low.
Is that whats happening now? There is no way to tell, but the sudden and excessive jump is a dead give away that the market correction is not over. When the market does bottom we will see intelligent and institutional investors slowly creep back in. Thats what you want to see and it is sustainable.
I was a day trader for years and love following cycles and this one doesnt look strong to me YET. My money is staying in cash and cash related products.