Three straight days in the black. Not bad.
With today’s gains and the Dow at 7,159.70, the index of blue chip and formerly blue chip companies is now about 11% off its low of 6440 made just a few days ago. The S&P was the big winner today, tacking on another 4% to close at 750.
Suddently, money is flowing back into banks, which have basically been trading like options — potential for total wipeout or huge upside. Bank of America (BAC) was up 20%, though it’s still below $6 a share. GE (GE) is even edging back towards $10 per share.
Who knows why the market rallied. Maybe the GE story, maybe the likely modification of mark-to-market. Maybe just exuberance that a Ponzi schemer is off the streets.