action today seems strange...economic indicators were certainly not good...and analysts cut MER estimates late in the day based on more writedowns, yet we had a pretty good surge which I wouldnt have expected... would love to hear some comments and thoughts on today...
This seems to be a typical trading pattern of skf. Each time a big rate cut will create a drop but it soon reverse course and jump up within 1 week or 2. Big layoff news is yet to come, this recession is far from over.
Consider we had so many down days, today's market action is pretty normal. I would not be surprised if the market continue go up a day or two so that more money pile in and the market turn very positive and optimistic. Then you will see big and huge drop in a sudden and unexpect way. The market will not go straight down. It will go up and down. Ask yourself this question, is the market in a up trend or down trend? As long as the trend doesn't change, hold it tight and you will get reward.
probably a lot of short covering, also. Isn't it amazing all the bad news out and all the banks that are going to the discount window to borrow money that the market takes this as good and goes up? I look for a down day Monday, but who knows, this market's schizo.
Todays action was not unexpected considering what day it was. I do think that the banks had a very good run in the last four days, some are up over 25% in that time frame, and I believe they will sell(profit taking) on Monday. This is just my opinion.