Huge Rally Today But Unlikey To Be Sustainable

The rally today was massive. The TSX was up around 7%. Here is a sector snapshot of the Dow indexes (courtesy wsj.com):



I think the rally is bogus and unsustainable. Part of the rally is due to the elimination of short selling of financials. As you can see in the chart above, the big gainer was financials. The second best seems to have been energy. A lot of short sellers likely covered their positions in case the SEC extends the shorting ban to other industries.

Overall, we finished the week largely flat in most countries but, needless to say, it was beyond a wild ride.

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