Dow Enjoys A Beautiful Day On Bank Plan

Investors are hoping this Dow up trend continues so we can hit 8000 by the end of the week. Is it possible? I don't know yet, but the fact is that Dow posts best one-day gain since November 2008. It's nearly 500 points after Treasury details bid to buy bad bank assets.

Now, sustained levels are necessary to keep the rally going. If that happens we can start to suspect that the markets hit the bottom about a week ago. Expect to see some profit taking as investors have been burned up in the past year or so. However, if we can sustain Nasdaq and Dow upward trend, coupled with the positive news on Existing Home Sales and the Bank Rescue Plan, we can start suspect that things are starting to improve.

However, I would wait to see some positive earnings from the companies when they start reporting some net income and profit during the upcoming corporate earnings reporting season.

Alfred Goldman from Wachovia Securities commenting on the Dow close writes "The stock market enjoyed a powerful rally today on increased confidence the credit crisis has turned a corner. The S&P 500 extended its two-week rally to 20%. Financial stocks led the surge after the government spelled out details on plans to help banks remove bad assets from their books. The market also appeared relieved that the Senate may delay consideration of a plan to tax bonuses at financial institutions.

"Homebuilders benefited from an unexpected increase of 5.1% in sales of existing homes in February. Walgreen and Tiffany both reported better-than-expected profits. Walgreen gained 2.29 to 26.58. Tiffany was up 3.14 at 23.37. Commodity prices headed higher as the market anticipated more demand. Oil closed over $53 per barrel. And the market welcomed a big merger in the oil and gas industry. The combination of Sun-Cor Energy and Petro Canada will create Canada's largest energy company. Sun-Cor fell 56 cents to 24.73. Petro-Canada rose 5.28 to 29.29.

"The Dow closed up 497.48 points at 7775.86. NYSE volume totaled over 1.9 billion shares. The S&P 500 was up 54.38 points. The Nasdaq gained 98.5. Advancing issues beat decliners by 9-1 on the NYSE and by 5-1 on the Nasdaq. The 10-year Treasury note was down 12/32 to yield 2.68%."