Will This Gift Keep On Giving?
Was last week a gift from the heavens? Is the worst over? These are the questions that everyone is asking himself/herself as we head into a new week with a head of steam and a northerly directional bias. Have the rains cleared, has the lava cooled? Or was last week a sick joke of nature, sort of like the duck-billed platypus? Was it only natural that the markets finally rebounded?
I know I’m supposed to be answering these questions, not asking them, but I have to or https://npfinancials.com.au/throw the questions and topics out there before tackling them. The short answer is I’m not sure to any of the questions above, but let’s view them from all sides and see what we come up with.
First, I don’t think there was divine intervention involved in last week’s action. I do believe that there were certain events in America that probably answered a few prayers. (By the way, if those trapped miners in Pennsylvania had been rescued during the week, it would have provided a spark to the action. Though the comparisons are unfair I couldn’t help but think of how decisive the response to the emergency was compared to the Russian attempt to save the Kursk a few years ago.)
The biggest prayer was one seeped in anger and even hatred, and that was for the open arrest of a big-time CEO. When the Regas family was led away in cuffs, the market was already climbing off the mat, but the news supercharged the rebound effort and many speculators that had been waiting patiently found themselves in a position where they had to jump first and ask questions later.