by Jack
The DOW lept out of the starting gate this morning on good news! The housing market had it’s first significant increase in home sales in Feb., due to a drop in interest rates and falling home prices that apparently attracted a few buyers. Currently the market as of 8:56 a.m. is up 235 points.
Although the home sales were only up 2.9% in Feb. it was still the largest increase in over a year and any good news here is greated by Wall Street with wild enthusiasm. Tomorrow is another day and the big question is, will investors be left holding the bag on the stocks they bought today? Greed and panic move the market is an old saying and for good reason. The prudent investor knows the opportunity for bad news far outweighs the potential for more good news as the economy teeters on recession.