Well, all I can say is my radio news caster I regularly listen too sounds positively bummed that the melt-down, “has abated for now”… I had to laugh. But he is correct. As soon as the US woke up this morning, even with hang overs and full bellies, the return of liquidity has calmed things down.
Gold is back to 1,175, the Dow has rebounded 200 points from its lows, and while the public is out participating in “Black Monday” for the retailers (traditionally a positive item) the TV anchors have canceled plans for shots in front of the brokerage houses on Wall Street, salivating about “the overnight panic” due to to the Yen and the Bank of Dubai. It seems that the Bank of Dubai really liked oil at 150 bucks a gallon, rather than 72 bucks a gallon. Imagine that…
In any event it will be interesting to see how it plays out.
I will say its interesting how this stock market has absorbed bad news once again, shaken it off and rebounded. Who knows what Monday will have in store, however… In the mean time, this correction was necessary,and basically it was a 38 percent pullback of the one month rocket ship we began, after November’s lows on Unemployment Figure Day.