12-Feb

Late afternoon rally erases early losses

The market shot up in a late afternoon surge. Will we see some upside tomorrow as end the week?The economic news continues to be bad and will be for some time. Unemployment rose again this week setting another record. The markets continue to focus on the lack of details from Treasury Secretary Geithner. Geithner's statements that it was better to get it right left investors wondering if he has a plan. If there is a lack of confidence on the part of investors in Geithner's ability to put together a good plan, it will be difficult for the markets to make much headway. The Index Put Call ratio dipped below 1.0 level again today chiming in at .93, this is a fall from 1.22 yesterday. I suspect we will again see it sit below 1.0 for a day or two as we have seen in recent weeks. The markets are looking for any excuse to rally, it simply needs some substance so investors will be willing to bid up for stocks. Investors and traders want a solution and they want it now. We know that many are anxious for this bear market to end or at least to provide us with a good bear rally to profit from.

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