Bernanke fired up the bulls again with hints of another rate cut. But to me this only bodes well for trading up to the announcement. To me the key to the stock market climbing is restoring a calm tone with regard to the big banks. A rate cut may or may not help this. Stocks are clearly attractive right now, especially considering the unattractive rate of return of bonds and cash. But if there is continued shake up causing fear, most investors will get out of stocks based on fear.
Crude oil has dropped to $89, which has also helped. It appears that it will take a major occurrence to break $100 (geopolitical event, or issue with suppliers or refiners).
With those being said, I still wouldn't be surprised to see stocks sell off a little heading into the weekend. It has be a nice week of recovery for stocks, and with the continued uncertainty and rate cut euphoria wearing off, investors may take some profits.
I made some layout changes to the blog. Nice to look at something new.