The Dow swung 911 points today, posting its biggest trading range since October 13. The index closed 11% above its session low, erasing yesterday’s losses and snapping a three-day losing streak.
Have we seen the bottom or are we seeing yet another bear market rally?
Here are some interesting comments from Kathy.
- In every major bear market, there are relief rallies and that is what we have seen today. The Dow Jones Industrial Average dropped more than 300 points during the US trading session before reversing violently to end the day up more than 550 points. The major turnaround in equities has forced the US dollar to give back its gains.
However as much as I would love to see the global unwind come to an end, the continued weakness in US economic data makes me really skeptical of this rally. Nothing is behind the move other than short covering. Therefore this could be more of mirage than a bottom for currencies and equities.... full article here
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