| It has been crowd psychology at its best as we go from fear, to panic, to euphoria. I had to laugh today when Harry Reid starts talking about a “New Deal” is needed, bringing up the Franklin Roosevelt era. The bottom line is that it was an excellent trading day using the $SPX, but I certainly did not catch that last hour vertical explosion, so I hope some of you did. The $SPX went +49 points in the last hour, and the $INDU +396 points. They both reversed +5.4% off their intraday lows to highs. The sector theme was constant all morning as the interest rate sectors were green, and the energy and commodity stocks were down big. For example, at 12:05PM the $SPX was -2.0%, with volume almost a negative 2:1 and $TRIN 1.30 Meanwhile, the $BKX was +4.1, $TRAN +2.5, XLF 1.6, $XBD +1.0, RTH +0.3. On the red side was the OIH -5.0, XLB -4.9, $HUI -4.5 XLE -4.2, and the QQQQ -4.9 The major indexes made their lows on the 12:45PM bar, and then went trend up again, as did everything else, followed by the last hour spike. |
