Finally out of the cellar?

• No new trades.

Strategy Lab is MSN Money's stock-picking challenge. To learn more about the game and the contenders, click here.

Now, that's better. For the first time in recent memory, greed has won out over fear. Investors this week looked at the discounted stock prices, the Federal Reserve's bold actions and the rescue/steal of Bear Stearns (BSC, news, msgs) and decided that the time was right to do some buying. Gains were magnified by all the short-covering, as bears were caught on the wrong side of the trade for the first time in months.

Is the bear market over? Certainly not. While everyone breathed a sigh of relief when the collapse of Bear Stearns didn't trigger a similar collapse in the broader market, not much has changed in the macro picture. The average guy is still having trouble getting approved for a loan, even with decent credit. Oil prices are still stubbornly high, inflation pressures just got worse, the dollar remains weak, and the political climate is still uncertain.

Nevertheless, investors have reason to think that the worst is behind us. This week's investment-bank earnings suggest that while the industry is experiencing a slowdown, there aren't a slew of Bear Stearns stories to come. Oil prices appear to have peaked -- for now. The Fed has unleashed a variety of tactics to bolster liquidity that are just starting to take hold, and consumers are about to get some healthy tax rebates from the government.

Nobody should expect the market to move straight up from here, but if we can just alleviate the fear that overwhelmed the market at this time last week, then maybe, just maybe the market can start to build a base for the next rally.

No trades. I'm out of the cellar with a host of well-managed undervalued companies, so let's ride these dogs a little further.