Oversold rally

US stock markets rebounded strongly after the Abu Dhabi Investment Authority said it will invest $7.5 billion in Citigroup (C). Wall Street liked that vote of confidence but I'm not so sure. While the gut reaction was a vote of confidence for the nation's largest bank, my view is Citi needed a lot of money after major mistakes were made. They suffered severe losses amid the ongoing crisis in the mortgage market, banks have announced they would have to write off $80B in bad loans - a track record not to be proud of. The Dow Jones industrials rose 162 points, advance/decline ratio is 2-1 and NAZ is up 30. That's how volatility works.

Dow	12,906.09	+162.65	+1.28%

This may be just an oversold rally, let's see how it plays out.