In after hours trading MSFT and some other tech names are skying. Rumors are also circulating that Wilbur Ross is in talks to buy AMBAC. So, if tech regains its legs, despite some notable laggards [AAPL, MOT], while organized government rescues are taking place, stocks could have a big day tomorrow. This would put an exclamation point on this having been a helluva week in the markets.
Let’s give the government led by Bernanke for one his due. He has lived-up to his helicopter reputation of lowering interest rates and printing money to stave-off recession. His “muscle” in this high-wire act remains Paulson who is strong-arming SWFs, banks, insurance companies and no doubt Bernanke himself to stabilize the situation. It has given the existing bullish bias a shot of HGH.
It all will come at a high price to be paid by others later.
The stimulus package is interesting but isn’t worth a damn other than being symbolic and good for psychology with the latter being an important factor for investors.
So, let’s give them a hand but remember someone will have to pay the piper. That’s the message from the dollar, gold and bond vigilantes.
Have a pleasant weekend.
Disclaimer: Among other issues the ETF Digest maintains long or short positions in: SH, SDS, PSQ, RWM, TWM, DBC, GLD, IEF, EFA and IYR.