And the postman arrives save Wall Street

The postman came and saved Wall Street Buenos Aires, March 2009 Argentina11 glorious day yesterday for the U.S. market, and after losing over 20% in the last four weeks, the rates returned to party like not seen since last November. The S & P 500 climbed 719.60 points, a variation of 6.4%, the Dow Jones ended at 6926.49, a rise of 5.8% and the Nasdaq Composite rose 7.1% to 1358 points. The financial sector ended with rises of 20% promedio.Europa yesterday flew together with a 5% average rise but the enthusiasm plots yield, since this morning operated with mixed results. The market grabbed three stories to explain the rise: first, the Federal Reserve chief Ben Bernanke called for greater and deeper financial market regulation for second, Barney Frank, chairman of the Financial Services Committee of the House of Representatives U.S., said the Securities and Exchange Commission (SEC) could come to replace the "uptick rule" (rule that you can only take a bearish position or short-sell if the share price last-tick-is higher as above), and third, filtering the contents of a letter.

The letter was the CEO of Citigroup (NYSE: C), Vikram Pandit-led Citi's employees, and she said the bank had profits in the first two months of 2009 and so far the results of the first quarter have been the best since the last time Citi had net income in the third quarter of 2007. He added that the current value of the bank's shares does not reflect the strength of Citi's capital base. This information will be officially released only on April 17, but Citi shares rose 38% to U.S. $ 1.45 at the close, continuing the rise in the after market last night, reaching U.S. $ 1.58 per share A further 12% increase to the rise of the day. The bank has to have had five consecutive quarters of losses, including U.S. $ 8,290 million in the final of 2008. In late February, Citigroup and the U.S. government agreed to the latter's participation in the bank by 36% after the injection of U.S. $ 45,000 million. And if they need more funds, the U.S. government is willing to give them. Citi today is like the guy who lost the apple and gives mom the other.

Pandit said yesterday, for those who can read and understand, "still a month to finish the quarter and market volatility can affect the results." Reuters says a cable: "The advance in financial shares marks an improvement in investor confidence after the sector was recently hurt by rising credit losses for banks."

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Did anyone explain to me? Ed Yardeni try a more near-religious faith that the logic of the market: "We poor investors do not need much to rejoice, we have been so badly beaten," he says hopefully. "At this point, we take what we can," is formed. "He who invested based on what they said these managers in the last 12 months probably lost all your money. There is a credibility issue," he told Reuters David Williams, an analyst at Fox-Pitt Kelton. "The share price of a dollar means that the market has stopped listening." It is very dangerous what happened yesterday. A simple letter to employees of a bank, anticipating good results, for now only every two months-but have not yet been reflected in the quarterly results will be given in less than a month that will come the real final expenditure incurred by the entity. The market study should celebrate before the quarterly results that can demonstrate that the U.S. government can close the funding stream to the bank. There is no reason for celebration, nor for the cat that bounced because it is still dead. Yesterday's seems to have been sold to a run on what the market could take a breath, the letter from Citi.

Only the subsequent improvement and support around the level of 740-750 points for the S & P 500 managed to return to both life and in the meantime, the downward acceleration continues. Until tomorrow, and watch out for the postman ... Does the postman always rings twice? Latinforme www.latinforme.com Journal