The Dow Jones has closed negative in the last two days and now stands slightly lower than 11,000 points. However, as illustrated by my top quality graph, the downtrend should have been higher and more intense than it has been. This inflation in the prices of securities is probably a result of the ban of short-selling in over 800 US securities.
Moral of the story: The market is down, yet inflated. So, expect more days that finish in the red. (A super success of the bailout going through with no problems could change that though)
And in regards to Goldman Sachs, I would recommend buying the stock first thing in the morning or even in after-hours trading. Warren Buffett has committed over $ 5billion to the firm. Additionally, some people believe this deal will further increase capital and liquidity in the company and thus reduce risk which makes it more appealing to many investors.
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