As those of you who have read my finance articles already know, I was the first writer to call the current bull swing- way back in late January 2009, when the financial markets were in great peril, and it seemed that 50% of the so-called "professional" analysts were even calling for the Dow and S&P 500 to continue their slides into market oblivion. And 100% of them were certain the markets were destined to continue tanking. Newer lows. Re-test this. Re-test that. Then U-shaped recovery. Or maybe a W-shaped. Bump along the bottom. Blah. Blah. Blah.

Boy were they all wrong! And still are...

In late February 2009, I wrote an article in which I picked 5 stocks to watch for the short term: Beazer Homes USA (BZH), Russ Berrie & Co.(RUS), Las Vegas Sands (LVS), Bank Of America (BAC) and Libbey Inc.(LYBI.OB).

My average pick quadrupled (the worst being a near-triple).

As you know, in late February 2009, as the stock market was in extreme panic mode, I put together 5 very low-priced stocks to watch for an imminent bear market rally- a rally that took hold in full force only a week later. At the time I made these calls- I was met with extreme skepticism. Turned out I was right- and then some. The stocks I chose as potential 3-baggers, well, see for yourself how they actually fared:

Beazer Homes USA (BZH)- went from 56 cents to May 5th high of $3.95 (near 7-bagger)

No doubt that the recent FASB decision to relax certain fair-value/mark-to-market provisions, along with the excitement of a short-seller uptick rule reinstatement smackdown, coupled with a few of our major banks having said they were "profitable" for the first two months of the first quarter 2009- and with some bright spots signaling a macro-economic bottoming-out underway, have all contributed to the remarkable punch up of the stock market since early March, led by financials.

Mutual funds have spent the last couple of weeks toying with the day-trading shorts (and perhaps a few brave hedge-funds stragglers). Just when shorts are certain they've picked a top, the behemoth mutual fund monsters let the financials drop, then blow the clueless shorts out with a time-tested short-squeezed mission statement: do not short on our turf.

No- it's not another B-rated fable film noir. Or maybe it is. Watching this whole economic crisis play itself out has certainly been a total schlock-fest.

Surely, those financial marketeers who have been watching the plot unfold on their giant Best Buy (BBY) LCD TV's over the last 8 months must be wondering why those in charge of fixing this economic thing haven't yet simply granted capital forbearance to the big banks--and be done with this total financial market fiasco.

As everyone following the financial markets knows - every time a "rumor" or "sound-byte" surfaces that the FASB 157 mark-to-market provision might be suspended (or modified), the stock market runs like the wind. Recently, for example, rumors led to a giant comeback rally in the financials and other sectors. And, on February 10, more mark-to-market rumors flew in after-hours in regard to a modification possibility to be included in the Obama Financial Stability Plan - and again, the market was stoked. The market rallied into, and through the next trading day as the "TARP Accountability" hearing limped onward.

TALF- good. TARP- not so good.

Image Entertainment Inc. (DISK), a leading independent licensee, producer and distributor of home entertainment programming in North America, recently announced that it had informed Nyx Acquisitions, Inc., an affiliate of Q-Black, LLC and Joe Q. Bretz, that Nyx was in breach of their November 2008 merger agreement. Under that agreement, set to go into effect this first quarter, 2009, Image shareholders, who voted to approve the deal, were to receive $2.75/share.

It's all been looking very "iffy" - but now seems to now "getting better." Until the next relationship hiccup, that is. A real stock market soap opera.

In early December 2008, the SEC placed my article proposing a remedy for short-selling manipulation on their website for consideration. My solution entailed enacting a simple rule: disallowing short-selling on the bid.

This idea is somewhat different than reinstating the uptick rule in that the latter solution provides that a short sale can only be entered after a trade causes the last price to increase; a short-seller can still short on the bid as soon as the last trade causes the stock price to go up (shorting allowed when the green "U" symbol or neutral "zero plus" shows up on Level 2).

According to budget analyst Brian Riedl at the Heritage Foundation, the top 20% of US tax filers currently pay 80% of the taxes collected by the US government. If President Emanuel's, I mean President Obama's, new tax plan is approved, the top 20% of filers would be paying 90% of all taxes. Which means that 50% of all American households would be paying no Federal tax whatsoever as of 2011.

Which gives me an idea.

There are some incredibly strange things that continue to occur out of Washington. I am not a conspiracy theorist by any stretch. But unless one chalks up the US government's actions (or inaction) entirely to severe incompetence, then one can only conclude that there are those in control who are continuing to intentionally act against the best interests of the American taxpayer.

The biggest problem- from the outside looking in- is that it is very difficult to figure out exactly who is in control. Is it President Obama and his administration? Is Obama himself being controlled by certain people within his administration? Is it certain Congressional leaders within an overloaded Democratic Congress who are really running the show? Is it Senator Christopher Dodd, Representative Barney Frank or House Speaker Nancy Pelosi? Or are there powerful outsiders who are behind what has been going on?

On October 16, 2008, NASDAQ implemented a temporary suspension of the $1 bid price rule. This temporary extension, which was originally set to expire on Friday, January 16, 2009, has now been extended through Friday, April 17, 2009.

Beginning Monday, April 20, 2009, NASDAQ will start a fresh clock ticking in regard to any company's stock whose bid price then closes below $1/share (from that trading day onward). (NASDAQ Temporary Rule Suspension)

As some traders are already aware--on January 8, 2009, Rep. Gary Ackerman [D-NY] introduced Bill HR 302 IH in the House Of Representatives to "require the Securities and Exchange Commission to re-instate the uptick rule on short sales of securities."

The bill has now been referred to the Committee on Financial Services, and is co-sponsored by:

As everyone following the financial markets knows, every time a "rumor" or "sound byte" surfaces that the FASB 157 mark-to-market provision might be suspended (or modified), the stock market runs like the wind. Recently, for example, rumors led to a giant comeback rally in the financials and other sectors. And, on February 10, more mark-to-market rumors flew in after-hours in regard to a modification possibility to be included in the Obama Financial Stability Plan -- and again, the market was stoked. The market rallied into, and through, the next trading day as the "TARP Accountability" hearing limped onward.

TALF=good. TARP=not so good.

It's that time again- GT McDuffy's Armchair Quarterback Top 10 List of the Most Hated Men in the Financial Markets for 2008.

1. Bernie Madoff- for allegedly pulling off the largest Ponzi scheme in history. This one's a no-brainer.

It's far too easy to blame the SEC for the Bernie Madoff fiasco- or anything else. In fact, it's way too convenient. And, Rep. Gary Ackerman (D-N.Y.) yesterday blaming the SEC for undermining the confidence Americans have in the financial markets is outrageous.

Mr. Ackerman, how dare you.

Novadel Pharma Inc.(NVD) recently received FDA approval of its Zolpimist™ (zolpidem tartrate) 5 mg and 10 mg Oral Spray.

Zolpimist™ is intended for the short-term treatment of insomnia characterized by difficulties with sleep initiation.

NovaDel Pharma (NVD): Company recently received FDA approval for its Zolpimist™ 5 mg and 10 mg Oral Spray. NovaDel is currently engaged in commercializing Zolpimist™, which will surely attract big pharma partners. Additionally, NovaDel is currently finalizing commercialization plans for NitroMist™ - which was their first FDA approval. Logic dictates that, with two FDA approvals now under their belt, NovaDel's niche in offering oral spray versions of big name drugs that are currently available in tablet (or non-spray) form is a bonafide and potentially very-lucrative market. Particularly interesting at this point in time for companies such as NovaDel Pharma, is recent M&A activity from large pharmaceuticals looking to partner up big and small. EDGAR filings, just reported (February 2 and 3), are extremely interesting as well.

GTC Biotherapeutics (GTCB): Company is awaiting approval from the FDA per its transgenic goat-based ATryn® drug. In an historic move, an FDA advisory committee recently endorsed the drug. The FDA decision is due by February 7, 2009. Pharma drugs made from/with genetically-engineered animals is a hot topic, and related final guidelines from the FDA have recently been issued- in anticipation of the Obama administration's pro-stem cell agenda.

So, at this year's annual World Economic Forum meeting in Switzerland, the United States trumped up the "Buy American" dogma. Canadian Finance Minister, Jim Flaherty, responded by pronouncing that American "protectionism" would be "met by resistance" by countries around the globe- but that Canada would not effect trade restrictions of its own.

After all, why should Canada stand in the way? They are the number one trading partner of this United States.

As most experienced traders already know, February is the trigger-month for long bull runs in the stock market. It seems that whenever bulls finally decide to stare menacingly into the bear-faces of doom 'n gloom, the bears quickly cower and retreat back into the caves from whence they came. Bear hibernation period--at least 5 years.

Every bear market ends the same way. With the same "worst since this" and "worst since that" headlines blasting in the media for a few months--actually "one too many" months- which finally ignites the fury of the bull. Shorts, feeling arrogantly invincible, bashing everything in sight, go head-to-head with longs who have been feeling utterly frustrated and seriously beginning to doubt if the market will "ever go up again."