420 points up today on the DJIA.
Sparked by strong earnings from Lehman and Goldman this morning, our Bear rally was clinched by the afternoon news of the Fed lowering the Fed Funds rate down to 2.25% after lowering 25 basis points earlier this week.
Read the FOMC statement here>>>>
http://www.federalreserve.gov/newsevents/press/monetary/20080318a.htm
The Fed vote was 8-2 in favor this time.
Now the Fed has about 400 billion on the Balance Sheet, and Fed tools are flying around like a socialist farm shed. Some professionals are saying that the Fed should start buying up individual mortgages. If it happens, we think that the "recession" ball has too much momentum to stop it from happening. One indicator that we are looking forward to seeing is the Consumer Spending and Unemployment Claims numbers in September through November. These numbers will give us a solid indication of how far into 2009 this might last.
The Dow has ran up about 800 points in the last 2 weeks..........the Vix is dropping from 30 and the market is looking like a short term Bear Rally, but certain stocks such as some of the brokers and or banking stocks, might experience a pull back.
Look forward to the dollar to keep falling and keep and eye on the commodity pull back. We look for the commodities to pick up again.
Good Fortune from Trade Equity!!!
