(As of 7:22 am pacific)
The US ISM Index came in above
expectations at 51.5 indicating a positive growth mode for the US economy. That strong news, coupled with European ISM
data, which came in better than expected, although still tepid, has caused
markets to open the new quarter with a bang.
The Dow is up triple digits with other markets following suit. It is a surprise rally after last week’s
relatively weak performance and might have caught market bears in a bit of a
short squeeze. Short sellers may have to
liquidate short positions thus adding to the intensity of buying demand and strengthening
the rally. Gold and oil are up along
with most commodities and the dollar is weakening as capital protection takes a
back seat in today’s market action.
