Morning traders - our suspicions that a rally was in the offing have been confirmed spectacularly. That smell in the air is burning shorts.
Market wrap: global markets soared overnight, with Wall Street building on a strong lead from Europe to close 6 - 7% higher. The Dow climbed 379 points to 6926 as beaten-down financial stocks were bought up on the news that Citigroup was profitable this year. US banking indices gained more than 15% and most sectors were strongly ahead. The exception was gold miners, sold down as the price of gold dipped below $900 for the first time in a month, losing 2.5% to $895.
Oil also lost ground, dipping nearly 3% to $45.77, but base metals all made solid gains.
No surprise that our futures have the ASX opening up 99 points at 3266.
It's likely to be pay-day for anyone who held overnight. I have positions in WDC, WES, AMP and FGL. A bounce as powerful as this should be good for another couple of days and I will try to resist the urge to sell at the open.
As for new purchases, anything that has been heavily short-sold should run hard today as the shorts scramble to cover. Minchiyon posted a list of the most heavily shorted stocks yesterday and that's a good place to start:
