Dow Jone Soar 400+ point with positive fed help
The Dow Jones Industrial Average rose 416.66 points, the S &PÂ index soared 47.28 points and the Nasdaq Composite Index rose 86.42 points.
The FedÂ today acted in a creative effort aimed at thawing the ongoing credit freeze that ails the economy — a smart move that was greeted with a great enthusiasm by the Wall Street investors. The US stock market performed and closed with its best single-day point gain since July 2002, as the financials led a huge 416-point surge on the Dow.
Even before the Fed’s new plan to inject more than $200 billion into the financial markets was revealed this morning, the market appeared poised for a bounce back due to short covering. Few could have anticipated the move would have been this big, however. The bears have dominated the tug-of-war in recent days, as the Dow had lost more than 900 points in an eight-day span prior to today.
Do not be fool by this sucker rally. Dont forget we are still in a bear market, as the move by the Fed today is a great put buying opportunity, as well as a chance for you to exit your falling positions.
Keep shorting the financial on great news like this.
To your continual success!