Market update: just as it has throughout this financial crisis, Wall St sold the fact of government action after buying the rumour in the lead-up. Last night the Senate passed the financial stimulus package, Geithner outlined a bank rescue plan short on details or confidence and US markets collapsed 4 - 5%. Financials suffered most, with bank indices down 13 - 14%. Gold miners provided the closest thing to a refuge as investors fled to the safety of gold, but the miners still closed in the red. Gold spiked 2.5% to $914.
Oil was caught in the downdraft, falling 5% in heavy selling to near $38. The recent rally in base metals crumbled as stockpiles rose.
Our futures are appropriately bearish. The SPI crumpled 80 points to 3353.
Days like this are great opportunities to make - or lose - a lot of money. I'll look for quick trades in the first half hour in equities that open at ridiculous discounts or drop fast on stop-loss selling. Generally, it pays to be bold when others are fearful.
