The bulls were back out in full force today on wall street thanks to the news of the Federal Reserve cutting the discount rate. Earlier today we visited what this Fed discount move means to you the investor in this article. Stocks powered out of the gates this morning, slowed down some midday and then drove higher into the close. The Dow finished higher by 233 points, the Nasdaq by 54, and the S&P by 35 points. Volume was high across the board today as today was an options expiration Friday. 
The Dow was led by Exxon Mobil Corporation (NYSE: XOM) up by 4.3% on the day. Intel Corporation (Nasdaq: INTC) was the most heavily traded Dow stock today and it ended up 2.6%. Some big name tech stocks that have sold off recently also fared very well today. Apple Inc. (Nasdaq: AAPL) ended the day with a gain of 4.28% and Juniper Networks (Nasdaq: JNPR) finished up 4.94%.
Even the stocks with the most mortgage exposure which have been crushed of late had a nice relief rally today. Countrywide Financial Corporation (NYSE: CFC) powered higher by 13.1% on extremely heavy trading volume. Washington Mutual Inc. (NYSE: WM) closed up by 7.84% on double its normal volume.
Was this rally just a relief rally from extensive selling pressure and the Federal Reserve news or this is the true turnaround? I believe that the Fed news today was very significant today because the Fed has now acknowledged the credit crisis and the impact it could have on the markets. Many strategists felt that if the Federal Reserve fell too far behind the curve a serious recession could come from these credit problems. The Fed has now taken a more proactive approach and has hinted that they are likely to continue to do so if need be.
This does not mean the market is ready to jump right now. The problems that have caused this drop are still here and I don't foresee a quick rise in the markets anytime soon. I do, however, believe that the news today helps us know that the bottom has either been made or is closer to being made than we thought. I personally believe it would be prudent to wait for a pullback from today's levels and then begin averaging into this market. A patient investor who seeks for long-term capital appreciation must understand that over the long haul this market will certainly be far higher than it is today. These recent drops will eventually prove to have been a good buying opportunity. Sit back and relax and enjoy your weekend, this has been a crazy and exhaustive week on the street!
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