"Big Bear Market Rally Coming," Says Noted Bear Barry Ritholtz

Updated from 8:35 a.m. ET

Stocks jumped early Tuesday with the Dow recently up about 3.5% while the S&P and Nasdaq were each up more than 3.8%. The gains are being widely attributed to a leaked memo revealing Citigroup had operated at a profit during the first two months of the year. But the reality is the market was due for at least a short-term technical bounce after its recent rout, as discussed in the accompanying video, taped Monday afternoon.

Earlier: Despite a confirmed deal in pharma and rumors of a second, the stock market slumped to yet another round of multi-year lows Monday.

Still, the cadre of formerly steadfast bears who are turning bullish, like Doug Kass and Steve Leuthold, continues to add members. On Monday, newsletter writer Mark Faber, of the Gloom, Boom & Doom Report, made a bull call on Bloomberg TV, while veteran technician Richard Suttmeier of ValueEngine.com declared "the next 50% for [the S&P 500] is up, not down."

"There's a big bear market rally coming," agrees Barry Ritholtz, CEO of Fusion IQ, who's certainly earned his place in the pantheon of bears during this recent cycle. Ritholtz sees "more upside vs. downside" potential for major averages from current levels, and definitely believes it's "too late to sell."

Fusion IQ has covered its shorts but Ritholtz, author of The Big Picture blog and the forthcoming "Bailout Nation", isn't a rip-roaring bull. He's advising investors to "prepare a wish list" of stocks they'd like to own for long-term investments, but stresses the importance of scaling into positions vs. making a big one-time bet that a major "bottom" has indeed occurred.

Full disclosure: I am collaborating on Ritholtz's book and being paid for my efforts.