On 19 September 2008, Friday, usually a volatile day see stocks surged broadly in Wall Street after US Government firmed up the rescue plan for financial companies in bid to remove troubled assets from their books. This very aggressive and bold move by the Government had triggered massive investors storming back to the market and started buying in.
Dow Jones Industrial Average Index, DJI was seen rallied with a gain of 382.03 points or 3.47 percent during the time of this post as the market is still within trading session. A consecutive second day of gain over at Wall Street. Money are flowing back from the T-bills to equities again. The session will most likely to close with good amount of gain.
However, it is still more prudent to see how the situation goes before jumping fully into the market. I believed that there could be a slight technical pullback from these two days of massive gain. But financial stocks will enjoy a very fast recovery following renewed interest by investors on these stocks after the Government’s bid to rescue financial companies. This is not withstanding the move of banning short selling of these 779 financial stocks.
The above are of personal opinion and not at all an inducement to trade.