Yesterday, I posted the following analysis:
The financial sector appears to have bottomed over the last couple of days. House hearings on Mark to Market accounting are scheduled for Thursday. If there is any hint of suspension or repeal of Mark to Market accounting will send the financial sector into a nice short-term rally. If they reinstated the uptick rule that would be icing on the cake. The only negative is that the Treasury Secretary is scheduled to appear before Congress and anytime he speaks it seems to trigger a negative response in the markets.
The financials had a nice rally today. This rally will continue and expand if we get definitive action from the Administration and Congress. While I wish that is exactly what will happen, I do remain skeptical as to their ability to deliver. Therefore, this rally at its best will probably peter out in a week or less if nothing definitive happens
$18.6 (02/23/09)
