New York put on a stunning show today in the wake of the emergency infusion of liquidity into the banking system. Stocks rose over 3% as the indexes closed at their previous support levels. The Dow finished at 12,156 and the S&P at 1320. I think the rest of the week looks mostly negative though. Tomorrow may be flat at best, but Thursday looks dicey. Friday may see a slight recovery at the open, but a sell off is likely towards the close. I can see markets finishing not that far from Monday's open.
Bombay's Sensex has done fairly well so far this week and is due for an up day tomorrow on the heels of this rally, but I'm not optimistic that the gains will hold by Friday. I think we'll end up pretty close to the familiar neighbourhood of 16k
Gold held steady around $974, which is not bad considering the enthusiasm for stocks. Tomorrow looks very good, however, so we should see at least a $10 gain. Oil is still going crazy as it passed $108 as investors look for safe havens from inflation. Oil's gains tomorrow will be modest will price weakening in late afternoon trading.
