It may be a bit early to talk about a bull market on Wall Street, but there have been a lot of signs lately that a recovery is in the works.

When President Bush was in office, the democrats blamed him for the downturn in the economy. Now that Obama is in office, he is being blamed for the sluggish and slow recovering economy. Fact is, the economy is based on the business cycle, and it always has been. Sure, monetary and fiscal policy both have effects to a certain degree, over recovery time and how long an economy stays dormant for. However, there will always be peaks and troughs in the economy.

Today we learn of JP Morgan Chase’s (JPM on the NYSE) large profits for the 3rd quarter of 2010. Profits for the company rose 23 percent to $4.4 billion in this latest quarter, which includes July through September. A 23 percent increase from this time last year is believed by many to be a sign that a recovery must be near.

According to the reports, the retail banking arm was the main factor in such a large increase in profits. JP Morgan Chase saw their profits from retail financial services rise from $7 million in 2009′s 3rd quarter to $907 million this year. That’s not a typo.

All of this good news comes as the federal reserve looks to be about to initiate more quantitative easing, which should (if used correctly and timed right) help businesses grow.

Is a bull market on the horizon? It is very possible. What do you think?