3-Feb

Markets rally as financials remain weak

Although weakness abounded in the financials the major indices rallied in spite of the ugliness. Housing, Transportation, Biotech, and retail saw the largest gains.Again the markets rallied on some talk from Treasury Secretary Geithner that he plans to be very aggressive with fiscal policy. The market of late has tended to rally off potential government actions. It's after the talk that the selling commences. This market is dominated by short-term traders and staying in positions for more than a day or two as not materialized into anything significant. Buying weakness and selling strength in a matter of days has been the game of late.

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