To provide a very early heads-up on a potentially market moving event, I feel compelled to warn you of a possible double bubble. The signs are subtle, but there is no avoiding the fact that we are setting up for a monstrous and unavoidable rally that will make last year's highs look like a buying opportunity.

What is a double bubble? It is the opposite of a double bottom. It forms when, after the most devastating drop in history, the stock market quickly heals itself by allowing another bubble to form.

Investors last year ended up holding stocks that dropped from $234 to $2.34 while they were our of town looking at properties to buy with their (evaporated) gains. Every expert says these stocks will never revisit their old highs. How do they know? These are the same analysts who said last year that interest rates wouldn't affect tech stocks. What if they are wrong again? What happens if last year's price-to-earnings ratios of 200 were really cheap compared to what they will be when the Dow hits 36,000?

We may be, right now, in the mother of all pullbacks -- and Greenspan's head will spin like Linda Blair's in The Exorcist when he realizes that there is nothing he can do about a mindless rally this time. Greenspan can spew twisted gibberish at the markets to try to control their "animal spirits," but in the end the market may have him for lunch also.

Rats are willing to undergo repeated and powerful electric shocks to obtain a small amount of food or pleasure, much like a gambler keeps returning to the races after losing his life savings. I sense that many investors are keeping one eye on the Nasdaq, waiting for the first confirmation that the direction of prices has changed and is up again just like the old days.

Who can blame them? Watching your money multiply tenfold in a matter of months is very addictive. All the sermons in the world from the bears won't keep these speculators from doing it all over again. I would be amazed if most traders had suddenly become wiser from the recent carnage the first time around.

If 14,000 new online trading accounts are being opened every day, there is plenty of fresh meat to fuel the next bull run. Not to mention the hordes of bottom-feeders accumulating stocks for the long term -- which could easily fuel a dramatic rally as liquidity dries up in the stocks being held by these "strong hands."

The $2 trillion in sidelined cash rushing back into the market as interest rates fall will buy a lot of stock, given the current depressed prices.

Early signs that a double bubble is forming would be: