Stock Market Update -Mar 29th

The rally continues, with the Financial sector leading the way (see 5 day chart below). The Treasury Secretary gave the market a big boost on Monday with his rescue plan for the financial system, paving the way to clear out $1 trillion in toxic assets. We saw a small pickup in home sales, and housing inventory is starting to come down as well.

Yet another bank was shut down this week, and new unemployment claims came in over 600,000 again. Since February, we have seen new unemployment claims over 600,000 every week!

Commodities: Oil prices remain above $50 per barrel, Gold prices lost some ground, while the US Dollar rebounded a bit.

Next week marks the end of the 1st quarter for this year. On Friday we get the monthly payroll report, which can sometimes move the market in a big way. Market analysis: With the market being up 20% in three weeks, it's likely we will get a pullback, then possibly a continuation of the rally. For short term traders, this pullback would be a good point to enter the market again. For aggressive traders, the 'leveraged' ETFs could provide nice returns, as long as you use 'stops' on every trade (e.g. SSO, UWM, UYG)

The Financial sector recovered nicely compared to the overall market.

News stories:
Worst quarter for the economy since the 1930s
Economy rescue: Adding up the dollars
This Time, Geithner’s Plan for Banks Makes Sense
Bankers: Take your TARP money back
Obama’s bank plan could rob the taxpayer
White House finalizing plan for more auto aid

California's Wipeout Economy
China questions the dollar's role as a reserve currency
Japan Exports Drop Record 49% as Global Slump Deepens
Existing Home Sales - March Report
Jobless Rate Exceeds 10% in Three More U.S. States