Markets Soar, Dow 11% Off Its Lows

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.

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