It's too early to tell how long this move lasts

Gary Kaltbaum is an investment advisor with over 18 years experience, and a Fox News Channel Business Contributor. Gary is the author of The Investors Edge. Mr. Kaltbaum is also the host of the nationally syndicated radio show "Investors Edge" on over 50 radio stations. Gary is also editor and publisher of "Gary Kaltbaum's Trendwatch"...a weekly and monthly technical analysis research report for the institutional investor. If you would like a free trial to Gary's Daily Market Alerts click here or call 888.484.8220 ext. 1.

Drat...was hoping the market would remain calm until back from vacation.

In one of the most anticipated announcements since the O.J. verdict, the FED raised rates another quarter point. As far as we are concerned, this FED has changed its stance so many times in short order that we don't know which end is up. THERE ISN'T ANY INFLATION...THERE IS INFLATION...WELL MAYBE NOT. We really don't care what they say. We don't care about the opinions of what they say. WE CARE ABOUT THE MARKET'S REACTION! You don't need us to tell you the reaction. This time...the market exploded to the upside.

Since May 11th, we have remained very bearish on the technical condition of this market as markets and more so, world markets have had mini-meltdowns. Actually, some markets around the world crashed. During this time, we have told you that in order for our stance to change, the market had to have a follow through day. On Thursday the market FINALLY had a powerful follow-through day that we have been talking about. A follow through day occurs when the market finds a low and follows through with a 1.5% gain on heavier volume. As we have said numerous times, a follow through does not always lead to a bull move...but every bull move has started off with one. During the 2000-2003 bear market, there were numerous follow through days that failed. We are not thrilled that it has occurred on the 12th day off the low. This does not mean the market doesn't work its way upwards. History has shown that the optimum day would be in the 4th-through 7th day...but we will take it nonetheless. Just like our call of the top, we will say the same thing about Thursday's action. WE DO NOT KNOW HOW LONG THE MOVE LASTS OR HOW FAR IT GOES. WE WILL JUST LET THE MARKET DECIDE. We will now need to see leadership. We will now need to see leading stocks breaking out on heavy volume off of sound bases. The more we see the better. It is vital for a good move to have strong leadership to move things higher. Time will tell.

We are not ones to worry that this occurred right at the end of the quarter. Skeptics would say it is just window dressing because the 2nd quarter was so poor. Skeptics would say it was just a lot of short covering. They may be right. We have no quarrel with the possibility...but we keep our blinders on and just pay attention to the action. Bulls will give excuses in bear markets. Bears will give excuses in bull markets. We believe in what we see.