Thursday, September 18, 2008

2008-09-18

Today's big rally was lifted by three forces.

1. The Securities and Exchange Commission (SEC) adoped rules to curb 'naked' short selling and take effect right away on 2008-09-18.

2. Government technically lift the stock back to the track.

3. News, Possible financial crisis fix send Dow up more than 400;

From these three measures, we can see how powerful the USA government on the control of stock market. these three measures send out three signals:

1. USA stock market is under control of USA government. If it needed, the USA government can change the rule of the game.

2. The government can easily lift the market to where ever they want to. In today's case, it is more than 400 point.

3. Sending new out on right time. The USA government totally controlled the good news release time and interperation to ease the fears of people.

The above signals show every body that even the financial crisis is huge but the market is still under control of the USA government. This crisis can be solved without problems.

With this context in mind, in short time, strong USD, lower crude oil and commodity price is need to support USA Economy and reduce the inflation.

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