The Dow has swung in a 250-point range this morning, but it barely feels like it. We did see the usual short, sharp rally which took the Dow up 200 points — followed by another short, sharp decline that took it back down 200 points. Get the message? It's very difficult to sustain a rally.
Don't blame it on anything Ben Bernanke or Hank Paulson said. Both emphasized that the purpose of all these plans is to shore up capital in the banking system and, as Mr. Paulson said, "to increase confidence in our banks and increase the confidence of our banks, so that they will deploy, not hoard, their capital."
Meanwhile, the White House says it is open to the idea of a second stimulus package, but it depends on the details proposed by Congress.
For the record, the mid-morning selloff was led by techs and financials like IBM , JPMorgan Chase , and Microsoft .
Energy stocks are having a great day, as Oppenheimer upgraded all the big oil and gas names this morning with a bullish piece entitled, "Now Is The Time to Buy Oil and Gas Stocks."
Expect more attempts to call bottoms, as long as the credit markets continue to show signs of improving.
- The Dow 30 Today
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