Monster Rally

Monster rally in the indexes as short covering became a force in reaction to the downward actions of last week. The large waves of redemption and margin selling hit a peak on Thursday and again on Friday morning as anxiety grew about poor price performance and world credit markets. While liquidation remains an element of the current trading make-up, the focus will shift as the markets try to achieve an equilibrium between buying strategies, which may now be able to take advantage of lower prices, and the markets particular appetite for investments which have been subject to so much pain.