As of this writing, Bank of America (NYSE: BAC) is up almost 22%. This is on the heels of a 19% gain yesterday. Citigroup (NYSE: C) is up almost 27%, JPMorgan Chase (NYSE: JPM) is up over 16% and PNC Financial (NYSE: PNC) is up over 16% as well.
The S&P 500 (.INX) is up over 5% with the Dow and Nasdaq not far behind.
But why this sudden movement? Where are the economic reports that prove we’re out of the woods? What happened to the doom and gloom?
The market’s movement today started from positive comments by Ben Bernanke and Citigroup CEO Vikram Pandit. But as for solid reasons that the market has bounced for the last few days, we have a few theories for you.
One, that we’ve hit the bottom and are moving off of it. We’re about to start a new bull market. Or perhaps…
Two, the financials are the true “anchor” on the economy and the reason why the market is in the dumps, a few more positive comments are all it will take to move them upwards.
But more likely…
No one knows for sure.
This is another fluctuation in the market’s fragile emotional state. We’re likely to see a number of these as we move off the lows we’ve seen in the past week – rallies followed by a few days of profit taking. What we can say for sure is that these movements are going to be commonplace over the next 6 months.
It should be a lesson to those on the sidelines that they need to start looking at ways to start getting back into the market. When a new rally does occur – and only time will tell if we are in one now – by the time most are aware of it, the big movements will have already occurred.