Do We Trust It?
The market is getting a strong bounce at the open, with the Dow up as much as 100 points. This comes on the heels of strong overnight markets in both Asia and Europe. Also, the Yen is experiencing its biggest dip in 3 months versus the dollar, which is easing fears about the yen carry trade liquidation.
Sec. Treasury Paulson made some soothing comments about the markets, saying, "The global economy is more than sound... it's as strong in the last couple of years as I've seen in a lifetime." He also said that sub-prime lending fears are overblown and won't impair the capital markets.
Oil is trading slightly higher, boucing around 40 cents above the $60 level, and natural gas is bouncing also on cold weather in the east. The 10-year yield is barely higher, trading at 4.52%.
You know how distrustful I am of strong opens in the market. But after so many down days in a row, I am going to suspend my notion of disbelief and give the market the benefit of the doubt here. I would like to see the strength build into the close, which seems light years away right now.
Engine room...more steam!