Yes, in bear markets you can never really trust the rally, but did something special spark the latest rally?
Previous rallies were sparked usually because somebody got a bailout package or some other type of Government intervention, but the basis of this rally came because Citigroup (C) announced that January and February 09 have been profitable for them. Obviously, other banks are going to benefit from this news.
The Government was not totally exempt from the rally. Many investors found comfort that regulators might reinstate the rules to limit short selling. Some traders probably won’t like this, but at least it limits the traders betting on a company’s downfall.
The trick is to see how long this rally will last. Will tomorrow bring the bulls or bears out? Over the past year, we have seen many rallies come and go, but one of them has got to eventually stay, right?
I quickly wanted to see what the feeling was in the StockTwits community. Still seem to have a lot of doubter out there, but can you why wouldn’t there be?
