Thursday, February 5, 2009

Stocks Erase Losses, Rebound Higher

Currency momentum of a rising USDJPY has caused stocks to rebound, erasing all losses and moving into positive territory (see the S&P 500 chart above). I have no idea why this would help stocks. It is good news that we have managed to once again bounce off the lows we struck in November. Perhaps there is also some hope that a stimlus package is likely to be passed by Congress soon.

USDJPY Currency Cross