[What happens when the really smart sharks go after this with a fine tooth comb? I am still shocked the market responded as it did. ]
Don’t be shocked, I’ve been expecting a dead cat bounce maybe to 8000 or more. A lot of traders are Democrats who haven’t realized that business is NOT as usual and we are screwed on so many levels that a big crash is inevitable. Sell now and buy closer to 5000
The market jumped yesterday due to three things.
First, investors (and many in WashDC) finally realized yesterday that the Obama suicide health care plan and TAX hike plan, and even Cap & Trade is total lunacy and will probably never get proposed.
The Obama big universal health care plan is on life support, and likely will be terminated by Democrats THEMSELVES. Same with Obama's BIG tax hike plan.
Secondly, the stock and bonk market likes the (toxic asset) plan, I believe, simply because it will allow the banks and lending institutions to get these assets off the books, and into a clearing house so to speak where the govt (Treasury Dept) will partner in hawking them to private investors.
Thus, banks will be able to replenish their holdings with fresh untainted money, which can be lent hopefully to responsible creditworthy customers and businesses.
Thirdly, people are realizing that Obama has lost his credibility, and that the economy is doing OK despite Obama's attempt to create a crisis.
The adults will continue to do what they do in America.... run businesses... and Obama will be a gadfly who goes on Jay Leno and makes stupid comments and laughs at the economy.