Is the U.S. stock market rally for real? Or have stock prices gotten a little ahead of themselves?  After more than eight weeks in rally mode, it certainly appears that stock prices are outpacing economic reality.

With dropping oil prices and the current global attitude on commodities, Horacio Marquez of Money Morning recommends this offshore drilling company as a top performer in its sector.

Matt Weinschenk of Investment U recommends this oil transporting company as his favorite comeback stock. As oil and shipping prices go up and economic activity starts to increase, this company is likely to profit.

The oldest, most trusted technician in the world is telling you to sell now. Recession? Depression? Nascent recovery? Market bottom? Dead cat bounce?

Market timing matters, says Eric Roseman. Enter at the wrong time and face years of net losses. Get it right, and the gains will be enormous. Eric says US stocks have not hit a bottom yet. But sometime in the next 12-18, investors will have the mother of all buying opportunities.

These are uncertain and confusing times for investors, says Adam Lass. For those willing to hold for the long-term, Adam says the surviving financials and automakers could one day return huge gains for today’s investors. In the near future, Granite Construction (NYSE:GVA) could make investors 75% by the summer as shares soar on the stimulus plan.

Swings in commodity prices are often exaggerated in both directions, says Eric Roseman. And that’s exactly what we have seen with crude oil prices this year. But Eric says most of the destruction in demand is now priced in. But long-term supply will still be tight. That’s why we should be near the bottom of the oil cycle, with potentially massive gains for investors that by now.

A little over a week ago, Rick Pendergraft pointed out the eerie similarities between the stock market in 1974 and today. It is quite startling when you realize how much the two have in common. Even the declines in the Dow are within a single percentage point of each other.

I got another small surprise Monday night, browsing the major indexes.

As you can see from the chart above, the S&P 500 has broken the accelerated downtrend it’s been in since September.

Now, it’s true that this chart is only current as of Monday’s close. I’m writing you these words early Tuesday morning before hopping on a plane.

Perhaps while I’m up in the air at 35,000 feet, Treasury Secretary Paulson will say or do something alarmingly idiotic and help stocks return to form.

But if not, just imagine! The very idea that stocks don’t always go down and down… who’d have thunk it?

Whisper it Quietly

Okay, that was a wee bit of sarcasm (in case you hadn’t noticed).

If I…

Last week’s government aid package for homeowners appears to be working. Mortgage rates have fallen sharply, sending applications soaring. Andrew Snyder says this could be the start of a recovery in the real estate market, which would help stabilize the wider economy. This creates a great chance for profits with discounted blue chips like General Electric (NYSE:GE) and Altria (NSYE:MO).