Sunny skies are back in Wall Street despite the slowdown at main street.Despite a drumbeat of bad economic news, the stock market is up — almost 11 percent in the last few weeks. Junk bonds, those risky corporate I.O.U.’s, are rallying. The value of financial shares, bank loans, tricky credit derivatives — up, up, up.
For now, policy makers are echoing the mood on Wall Street. Treasury Secretary Henry M. Paulson Jr. said in an interview with Bloomberg Television on Thursday that “we are closer to the end of this problem than we are to the beginning.”
The dollar has strengthened and oil prices fell for the third day in a row.
It is a remarkable reversal in attitudes from just a few months ago, when the broader economy seemed relatively healthy but Wall Street was traumatized by billions of dollars in mortgage-related losses. Now, bankers and investors appear ready to look past the crisis to more profitable times, while consumers find themselves in a more precarious position as the job market weakens and banks make it harder to borrow money.
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Tracking the Dow on Thursday,1/05/08
9:30am--No tremendous gaps-up at the opening.It's a Doji Star,the match game decider.It covers an early low.
10:30am--Index doesn't look back now at session high.Plotting the candlestick is a white body-sign of bullishness.Open a buy long position.
11:30am--Another high,a bullish harami embeded.Hang on.
12:30pm--Still ascending,now confirm a galloping bull.The longer white candlestick.
1:30pm--It's the top,a graveyard doji seen.Close sell,short position.
2:30pm--No sign of crashing through the bull pivot (High+MAV)/2.
3:30pm--It again touch the support of the bull pivot.The inverted hammer seen.No apetitite to open a new position as this is injury time to closing.
4:00pm--It maintains the day's high ending with a small dark cover.Mild-profit taking,not so aggressive.
The beginning of the mid-pivot month of 2nd Quarter.The bullish candlestick with no unshaven top and bottom is sure good sign that it has room to light up further.
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