Media coverage suggested that there were some important news items that drove the market up today. The big one is that the FASB relaxing the mark to market rules. We thought we wanted More transparency from our financial companies. Those assets that are difficult to value because there really isn't a market for them can be valued at any amount the company thinks is appropriate.
The other idea was the G-20's promise of nirvana coming. Maybe they didn't say nirvana, just an important inflection point, but the media gave them some credit for the rally. Really.
No media source gave us the Elliott Wave 3 argument that we suggested ??? That's ok, we don't want them to know everything, do we?
After hours Research in Motion (RIMM), one of the members of our FSI (four horsemen fame) announced good news and popped the stock as well as the futures. News like this shouldn't give us much in the way of solid price movement but good news from these tech firms does surprise the markets a little.
Oil was up quite a bit and the dollar and T bonds were down. This makes good sense. That gold was down hard is a head scratcher??? We had heard on Wednesday that the ECB (European Central Bank) sold 35 tons of gold in the recent past which could be a reason that gold has had a rough go of it recently. Then today (Thursday) the G-20 made some comments on selling gold which did some more damage to the market.
One item of interest on today's stunning rally was that the VXO closed Up on the day. That means that traders were bidding up puts as the market moved up, a very unusual event. This is very encouraging to us that the market is going to continue its rally.
And, last but probably least, is the jobs' report that is due out on Friday morning. The expectations are that over 670K jobs were lost last month and that the unemployment rate jumped to 8.5% (from 8.1%). Will this have any effect on the market? If it does it will be short lived because the market is definitely Expecting bad news.