The first trading day of 2009 saw markets rally. In Hong Kong, the Hang Seng index rose 4.55% to end the session at 15,042.81, up around 25% from lows in late November of near 11,000.

The Dow climbed nearly 3% and broke the 9,000 level. In Europe, the FTSE and the DAX rose by approximately the same amount, as did Canada's resource-heavy TSX. The Russell 2000 Index of Small Cap Stocks climbed 1.28% to finish the day above 500 points, a new recovery high.

I continue to see the past five weeks' trading as a strong sign that smart money has already begun to accumulate equities in advance of a coming recovery. While I expect a steady stream of bad news, I see this period as a buying opportunity in stocks the likes of which we may not see again for decades.

Keep your eyes off the headlines and look at the markets.

Blake