That was another very impressive rally! All 30 Dow stocks higher and most of the Major Indexes up around 3.5%. The catalyst was LEH (+18%) and UBS (+15%) raising capital and quelling fears of liquidity problems and the good news seem to channel everywhere. Even the ISM came out and said Manufacturing Activity was unexpectedly on the rise. Normally, as has been the pattern for most of our booming one-day rallies, they are short lived. This one is different for two reasons. We broke through and settled above 1360 in the SPX, a big resistance number. Secondly, each one-day pop was creating a higher low as you can see below in the chart. This rally seems to have a better chance of being sustained. Typically the first day of a quarter is strong, but this seems to be some pent up cash flowing back in. Hedge funds are rumored to be sitting on piles of cash, and a 3.5% gain in a day will get some attention.

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