We have an incredible market recovery thanks to a potential rescue package from the US regulators. The US government plans to restore calm to the financial system by rescuing banks from billions of dollars in bad debt.
A temporary ban on short selling of selected financial stocks likely added to the up move as traders cover their short position. All in, the Dow managed to rally 370 points to close at 11388.
The index is down just 0.3% this week. If not for all the effort by central banks around the world, the scenario would have been worst.
The index is still in “Bearish” territory and is resting at the 50 day moving average. Hopefully the rescue package can be approved next week to lend further support to the fragile market.
A temporary ban on short selling of selected financial stocks likely added to the up move as traders cover their short position. All in, the Dow managed to rally 370 points to close at 11388.
The index is down just 0.3% this week. If not for all the effort by central banks around the world, the scenario would have been worst.
The index is still in “Bearish” territory and is resting at the 50 day moving average. Hopefully the rescue package can be approved next week to lend further support to the fragile market.
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