The news helped lift shares of other major banks, with Bank of America Corp rising by 35%.
From one of my favourite writers:
"This is a tough market to navigate. ON the one hand the world economy is a mess and completely imbalanced. Half of the world is too dependant on exports (mostly Asia) and the other half (US and parts of Europe) is in a dream world believing that they can consume more than they can produce, can pile up almost unimaginably high debt levels and can live happily ever after.""On the other hand, whenever the natural market forces begin to remedy this nightmarish state, governments step in to halt the corrective process, ultimately making matters worse and pushing the day of reckoning a little further on down the road. But in the meantime, stocks can rise from the inflationary push."
The urge to take on risk is rising. The bear is doing his job, and I expect the retail public to be entering the market in a matter of weeks. The public can never resist a steadily rising market for long, and this market is inching up week after week
As the market rises, volume is dropping. Also, MACD is close to (red arrow) giving a sell signal. Let's see how the market works around these indications.
Have a good weekend.
No comments:
Post a Comment