The stock market started the day up huge (178 points on the Dow Jones Industrial Average), then moved down 170 points to the negative, then moved back up 90 points to the positive, then moved back down to minus 78, and now the European Central Bank just came out and said they are working on a financial rescue plan this weekend to help out the banking system and now the Dow is up 130 points!
If I knew for certain that the ECB would be able to tackle the financial problem starting this weekend, then I'd be buying stocks right now, but the sad fact is that the ECB has said this multiple times before and I have little faith in them at this point - kinda like the boy that cried wolf! The main problem, like I mentioned earlier is that the European Union doesn't really have the financial means to do this on their own...they would more than likely need the U.S. and China to assist them in raising the amount of money necessary to actually accomplish a bailout plan.
All that being said, the technology and the financial sectors are getting crushed today...why? Because if Europe can't get their act together, then technology companies will see their international businesses decline. The financial sector is getting hit today because if Europe can't get their financial system under control, then investors are going to continue to sell their bank/brokerage holdings despite the fact that our financial system is doing fine.
Simply put, the massive moves up and down in the market are because of the situation in Europe! I wish we weren't held at the mercy of Europe but unfortunately that's the case.
