Tuesday, December 16, 2008

Market rallies as Fed cuts rates to zero

Ben Bernanke provided the fuel for a big 5% rally on Wall St as the Fed chair cut rates to as low as zero. The Dow closed at 8924 and the S&P at 913. Indian stocks were also higher as the Sensex closed at 9976 and the Nifty at 3041.

While the up day in New York was not surprising, the strength of the rally was. I think tomorrow may see a shift however and the end of the week still looks bearish to me. I'm not convinced that this rally is for real. There will be still significant declines before January.