Raging Bulls Strike Back

Calendar January 23, 2008 | Posted by Jorge

600 points. That was the swing from the Dow low on open this morning to the monster bullish close this afternoon. The markets closed up almost 300 points with homebuilders and financials leading the way. Homebuilder sector gained about 11% today as a result of yesterday’s rate cut plus a potential bond bailout plan by officials in New York. The markets are also expecting another 75 bp cut next week when the FOMC meets for their regularly scheduled get together. I don’t think we’re out of the recession woods just yet, but if the FOMC does cut again in addition to the insurers receiving a bailout plan, I think we’ve just seen the bottom of the short bear market. There’s still quite a bit of housing inventory out there, but with mortgage rates nearing the sub-5% region plus decreasing prices, expect folks, such as myself, to seriously look into purchasing and refinancing their homes. Also expect TLC to air new episodes of Flip That House.

Category Categories: Market Pulse | Tag Tags: | Comments Comments

  • These are crazy days. The funniest thing to watch is the the general media (i.e. newspapers) try to keep up. Typically they can ride one trend or another, but this is crazy - they won't know what to write tomorrow.

    The Dividend Guy
  • I stopped watching CNBC to be honest. One minute it's recession, the other minute everything's great, the next Cramer's jumping off a cliff. I give up hah!
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