First off, I have been linked in the latest edition of the Personal Finance Carnival.
Woah, what just happened? Yesterday the markets surged nearly 500 points, but why? It seemed like a flood of interesting news was just being throwing into the markets:
- 75% of the AIG (AIG) bonuses were returned.
- AIG competitors blame bailout for losing business.
- Warren Buffet is actually about to be in the money on his Goldman Sachs (GS) trade.
- Goldman Sachs is considering selling its stake in Industrial & Commercial Bank of China Ltd. to PAY BACK to repay the government.
- The U.S. Treasury proposed to build a market for toxic assets, which would help alleviate some pain.
- Suncor Energy (SU) acquires Petro-Canada (PCZ). Oil sands poised for a rebound?
While we shouldn’t jump to any conclusion, it has been a while since we heard so much positive news all on one day. Short-term a nice triangle has formed on the Dow, with a possible price target of 8500. Hopefully further confirmation will be seen over the next few days and weeks.
The Volatility Index (VIX) is one form that measures short-term volatility. Obviously the lower the better better. That being said, the index still stands above the 200 day moving average, although it has moved lower. Until the VIX breaks the 200 day moving average, volatility should definitely be expected.
