After yesterday’s incredible rally which saw stocks take off at about 2:40 PM and and the Dow Jones Industrial Average climb over 400 in 80 minutes, to close at 11019.69 for a gain of 410 or 3.86%, we might see a follow through today.
Stocks rallied on word that the government is working on developing a plan that would have it set up a rumored $800 billion fund that would buy bad mortgage backed asset from financial institutions which would unencumber their balance sheets.
If the rally carries on into today, traders should look at buying regional bank stocks as they were some of the better performers yesterday. Some stocks to consider would be City National (CYN), SVB Financial (SIVB), Cathay General Bancorp (CATY), United Security Bancshares and PacWest Bancorp (PACW).
