The fundamentals are indeed strong.
I wouldn’t be too happy.
Dems will say this is a sign that the more Gov’t in the markets and banking sector the better. :(
Remember where we started from last week or the week before............
Bet the Gold and Silver bugs on this forum are also crying.
I’m not aware of ANY sumprime loans being issued without substantial down payment which is the way it should be.
” Freddie and Fannie continue to issue sub-prime and Alt A (interest only) loans,...”
PLEASE tell me this isn’t true.....
I hate to have to tell you this, but if a 50% stock market crash over the course of a year can’t be used to predict “Dow 6000,” then by the samel logic a one-day rise of 11% can’t be used to declare that “Happy Times Are Here Again.”
Historically speaking, once market volotility reaches current extremes, daily swings of 5% to 10% can become quite common for a while. From 1929 to 1932, huge upspikes like today’s were not uncommon. It’s not the absolute size of any one swing that means anything, but rather the size of the swings relative to each other.
If you look at a price chart, you’ll see an upswing of similar magnitude on September 18 and 19 this year. And from that same price chart, it’s easy to see that using that upswing as a bullish signal would have been disasterously wrong.
That doesn’t mean a new bull market hasn’t started. It just means it’s way too early to make any such judgement.
Hopefully, the new bullish mood will last long enough to get McCain elected.
It’s the biggest daily gain since 1932, coming right on the heels of the biggest daily decline since 1933.
So, don’t get too excited about this extreme volatility, just because it’s to the upside. We’re nowhere near out of the woods yet.
Tomorrow’s a great day for anyone who missed the boat the last few weeks to SELL.