Because 1. government to buy bank shares.The more buys, the higher prices 2.Treasury secretary says to the effect that government buying will result in no dilution to existing shareholders, government will protect current holders. 3.Bail out plan is beneficial to financial stocks primarily anyway
4.many banks,financial stocks are a bargain still.
5.Any rALLY IN STOCKS market generally starts from financial rally
Please do your own research.Please do not listen to my views.
i'd sell this rally, but long term i'm cautiously optimistic. let's say it does go up $2 today, doubt it, but let's say. that would be 18.28. the low was 3 days ago at 12.79. that would be a 43% increase in 3 days on an etf... an etf!!! holy swiss cheese batman i'd say that's the selling opportunity of a lifetime.