What a good storm it is. The banks keep rumbling forward, scarcely a moment to breathe. No horse, no runner can keep moving without rest at this pace. Not without artificial means. Of course, the steroids in this market are provided by good ol' Uncle Sam. Today's move by the Fed at the FOMC meeting jolted a stagnant session and even assured the most skeptical of a continued rally.
AIG, the most hated corporation in America, was already up from 96¢ to the 1.25 range before the FOMC news injected the market. AIG's head testified in DC in the afternoon, but the stock didn't tumble once. How to explain something like this?
Watching the stock throughout the day -- a 43% gain, not to mention another 13% in after-hours trading (to 1.56) -- was an absolute spectacle. Maybe watching someone defy the laws of gravity (Dwight Howard, Nate Robinson) comes close in terms of fascination. But the FOMC decision, which basically ensures (again) that all the sins of the financials will likely be absolved (and paid back, theoretically), gives AIG the kind of Big Brother protection that other financials are enjoying.
Citigroup got pumped up again today (up 22%), along with the rest of the sector. I feel somewhat comfortable with C. Even with the pre-FOMC risk, I walked in realizing that there could still be skeletons out there ... but probably not. Especially after the White House hired a Citigroup official recently.
Wells Fargo (Buffett) took another big leap today. It's hard to ignore Bank of America. Goldman Sachs. Yet, using play money, AIG is still on my radar. I can't fathom going in at this after-hours level, but watching it in the early morning might be worth a few buccos.
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