Bulls were in charge!

Stocks held their early gains & were bid up again in the last hour, finishing at their highs . Dow rose 497, advancers over decliners 8-1 & NAZ gained 98. Today's point advance was one of the biggest in history.


Buyers read my thoughts in the prior post & bid up bank stocks more, giving the S&P 500 FINANCIALS INDEX an outstanding day:

Value 129.21

Change 19.47

% Change 17.7%

Gains extended to about every group. The Alerian MLP Index rose 7 to 195s, taking back into the 190-200 range which were its boundaries in the early part of the year. REITs had an outstanding day as the Dow Jones REIT Index vaulted 16 to almost 110. Of course, it was coming off severely depressed levels & even at these prices, yields of 15+% are common. Even junk bond funds had a good day, those 20+% yields are drawing more attention. Meanwhile, the VIX, dropped 3, down to the 42s.


Oil had a very good day, tagging along with stocks, as enthusiasm for stocks bled over to oil. It even managed to get over 54 at the high.

CLK09.NYM

...Crude Oil May 09

...53.86

... 1.79 .......(3.4%)

Oil climbs toward $54 as U.S. equities surge- Reuters


What is called "the AIG bill" has been put on hold for a couple of weeks so Reps can look it over & think about it. That's a nice change of pace from lets rush this enormous spending bill thru in hurry before anybody can read & understand what is being approved.

•AIG Bonus Bill May Be Delayed Until Next Month as Republicans Study Plan



As a note of reality, the head of the FDIC said that some banks may be beyond help, even with a new plan. The note of caution follows comments by many that this plan will take months to implement. Don't expect quick cures.

•FDIC's Bair Says Some Banks May Be `Beyond Help' of U.S. Assistance Plans


Today was all bulls. Tomorrow is a new day with new problems. This plan relies on banks doing their fair share, something that has to be proven. The president now is getting mixed reviews for pushing on too many fronts at once. Business people would like to see a focus on the biggies: credit crisis, high unemployment, housing & autos. It may be unfair to others who are suffering, but dividing forces to attack on many fronts can bring problems everywhere. And that's where the markets have been coming from.