US markets rallied on Thursday night and ASX opened higher on...

US markets rallied on Thursday night and ASX opened higher on Friday and hit a high of 5236. ASX kept dropping due to panic selling once again and ended up closing at 4842 (-271 points or -5.3%). Today ASX rallied higher to close at 5181 (+339 points or 7.0%). ASX had its best trading session in 40 years. In my opinion, panic selling will dissipate and market is going to recover very quickly during the next month once all the bad news relating to Covid-19 has been discounted.

WBC closed at $16.16 (+$1.27 or 8.53%) and recovered all of it's losses from Friday's session. It appears to me that, WBC daily trading volumes peaked at 52 million shares on 13th March and daily trading volumes have been dropping slowly since then. WBC trading volume was 14.9 million shares today. WBC daily trading volume is still higher than its 10 year average daily trading volume of 7 million shares. Daily trading volumes will get back in the average range of 7-10 million shares per day during the next couple of week and WBC price recovery will resume. The reduction in trading volume shows that most of the panic selling is behind us. This will alleviate the pressure on WBC share price during the coming weeks. Bought some more WBC shares at $15.35 today.

Lots of positive news for the Banks today.

• APRA delays Basel III reforms by 1 year
• ACCC Chief believes that Big 4 banks likely to gain market share
• Banks will reduce overheads and become more hi-tech as they learn and move on from the current situation

WBC price jumped to $16.16 during the closing single price auction. Tomorrow is the last trading day of March month and as well as end of the quarter so large Super funds and institutional investors will be re-balancing their portfolios.