The moratorium on short-selling had its effect last night as traders rushed to cover positions in financials. Oil fell another US$4 and the Dow shot up 276.
The Dow closed down 92 in another volatile session which saw oil fall over US$6.
An early rally spurred by Fannie and Freddie failed last night as traders realised the overall implications. Regional banks were crucified. The Dow fell 45.
The Dow closed down 128 having been down 250 on rumours surrounding the US mortgage lenders and Israeli jet fighters.
The Dow rose 81 points in other volatile session as oil spiked suddenly and financials stared death in the face.
The S&P 500 crashed into official bear market territory last night led down by the financial sector. The Dow fell 236 points.
Weekly musings by your editor. Let’s suppose high oil prices are here to say. Does anyone still see any benefits in portfolio diversification?
Oil fell over US$5 last night as a coordinated Bernanke/Paulson/Dimon rhetorical effort bolstered the greenback and turned the financial sector on its heels. The Dow rallied 152.
It was a wild night on Wall Street as investors traded off a lower oil price against more financial sector weakness. The Dow closed down 56 points.
While some investors may be getting nervous about the outlook for commodity prices Barclays Capital notes structured products and those targeting new markets in the sector are growing in popularity.