...where there was much cheering that the US indexes rose three days in a row for the first time since July. "Very significant" was the consensus. Post-close one floor trader was collared and came up with the thesis:
- Citi rescue key to investors confidence
- $800bn consumer targeted Fed plan announced at the day's start crucial and shows the Fed/Treasury "get it"
- Shortened Thanksgiving trading week provides time to digest the benign significance of it all
- Investors should therefore start to believe this is the bottom and make merry post hols
This may all be true despite its suspiciously familiar smell and hint of holiday demobilisation madness. But pre-open index futures yesterday were deeply red and even with yet another large Federal/Treasury plan - this time worth $800bn and aimed at the hitherto politically pissed off Main Street - still only finished marginally up.
$800bn is, as Bill Poole poetically put it just after the announcement, a "spit in the ocean". Not to mention it carries no guarantees other than its cost to taxpayers.
Short/medium follow-through potential unproven.