" March 23 (Bloomberg) -- U.S. stocks rallied, capping the market’s steepest two-week gain since 1938, as investors speculated the Obama administration’s plan to rid banks of toxic assets will spur growth and investor Mark Mobius said a new bull market has begun. Treasuries and the dollar fell.
Bank of America Corp. and Citigroup Inc. both soared at least 19 percent as the U.S. Treasury said it will finance as much as $1 trillion in purchases of distressed assets. Exxon Mobil Corp. and Chevron Corp. jumped more than 6.7 percent after oil rose to an almost four-month high. The Standard & Poor’s 500 Index extended its rebound from a 12-year closing low on March 9 to 22 percent as all 10 of its main industry groups advanced."
This just hit the wires after hours:
"(US) REPORTEDLY, SEC IS WORKING ON UPDATED VERSION OF UPTICK RULE FOR APR 8TH MEETING- Could include price test which would only allow investors to short stock if Bid price is rising- Also considering circuit breakers for individual stocks to stop aggressive short selling."
I'm sorry folks but somethings smells really fishy here. Lets take a look at whats been sold to us over the past several weeks:
- Citi, BofA, and JP Morgan all come out at the same time and announce that Jan/Feb have been extremely profitable
- Congress comes out and announces the potential change/suspension of mark to market accounting.
- The Fed comes out last week and announces that they will begin buying treasuries and more MBS's.
- Bernanke and Obama hit the airwaves telling Americans that they are beginning to see signs of recovery.
- Geithner comes out today and announces his bank recovery plan which is then praised by everyone on Wall St.
- After hours we then get whacked with the potential reimplementation of the UPTICK Rule.
Sorry folks, this is all just too coincidental for me. What on earth do they plan on announcing tomorrow? Hmmm let me take a couple guesses:
- Tomorrow night perhaps Obama announces that he plans on dropping gold coins out of helicopters across the country every Thursday?
- Wait a second, that may not be enough to satisfy the debt slaves in our bloated economy. Perhaps they will up the ante and throw a $100,000 check to every taxpayer?
HA! I know I know, I got out of hand with that last one. We all know the taxpayer only gets screwed in this country. The bottom line here is this all seems waaaaay to coordinated for my taste. Something tells me the government saw some economic data that has scared the living daylights out of them. The PR machine was then put into motion.
Whats scary here folks is this: They just threw the whole kitchen sink at this problem. God help us all if it doesn't work. I mean think about what they've done: They have bought treasuries, bailed out the banks, potentially suspended M2M, and brought back the uptick rule all in one week.
WTF? Whats left? Also:
If our recovery has already started and the banks have been profitable since the beginning of the year then why do we have to do all of this? Why does the government have to once again pillage the taxpayer by using our money to allow hedge funds to leverage up and purchase worthless assets at inflated prices if the recovery has already started?
I mean according to Wall St stocks are a buy! The mustard seeds are already starting to grow. Get in now before you miss the big rally! God they are all so full of shit. Every damn one of them!
Feel free to buy into this load of BS. I'll pass thanks. IMO, here is what they are looking at:
Employment is collapsing:
The snake oil salesmen on Wall St have somehow managed to sell Main St another bill of goods. The reason Geithner's plan was such a hit is because its a slam dunk for private equity: The taxpayer takes almost all of the risk while Wall St takes very little but keeps 50% of the profits.
Once again the taxpayer gets shafted. Obama out to be ashamed of himself. A man of the people. Ha! What a sham. He is as big a fan of Wall St as Bush was. This guy has lost almost all credibility at this point.
I have come to one conclusion after watching this whole crisis unfold: The political and wealthy elites of this nation have no remorse over what has happened, and they will continue to game the system until its destroyed.
I honestly feel like I am watching a bunch of narcissistic sociopaths run our country right into the ground.
Remember folks, 7% moves in the stock market are not healthy and this crisis is far from over. The desperation that we are witnessing makes trading stocks almost impossible. The trend is long but the fundamentals are flatout horrific so the bottom could drop out at anytime. These are the types of markets where both the bears and the bulls get slaughtered.
You can play the trend and go long here but buyer beware. My advice continues to be simple: Raise cash and tune out all of the garbage that is being sold to you by the pigmen.