A reader writes:
I am a retired Wall Street Advisor and have been with one of the largest banks mentioned in the news for sixteen years.
The bounce that you see today in the market should be attributed to:
1- "Dead Cat Bounce"- After a big daily decline, there is always a reflexive uptick generated by "short Covering" and "buy on the dip "investors.
2- "talk of Optimism"- The news media this morning is talking about another shot at a bailout, albeit a smaller one. Also, do not forget that market does not have all its participants at "at the table". One thousand financial related shares can not be sold short, yet.