With the midday turnaround in the S&P 500 futures (top chart), note how we also saw a plunge in gold (second chart), a fall in the euro vs. the U.S. dollar (third chart), and a fall in the price of short-term Treasuries (bottom chart). Gold had represented a safe haven during the market decline; the U.S. dollar was under pressure during the decline due to failing financial firms; and short-term Treasury instruments served their role in a flight to safety during the decline. The simultaneous unwinding of these themes was a strong indication that market sentiment had shifted in a fundamental way.
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Dear Dr. Steenbarger,
My view on this rally: http://www.youtube.com/watch?v=M1owcncKCHg
Disclosure: I've been in the green both upwards and downwards (not sour about the FED screwing me or anything), I just think there's nothing to celebrate really and that this is a sad day for the free world (this is starting to eerily remind me of Atlas Shrugged).
Best trading,
Jorge
Yes, the Atlas Shrugged analogy has been bandied about in quite a few trading rooms!
Brett
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