Four at Four: These Go to Eleven (at The Wall Street Journal Online)

The indexes all go to 11. (Embassy Pictures) So this is what it means to correct a “deeply oversold” condition. Major averages all managed to gain more than 11% for the best one-day rally in terms of points, and fifth-best on a percentage basis, in the history of the Dow Jones Industrial Average and Standard & Poor’s 500-stock index. All but one of the Dow stocks ended in positive territory — sorry, General Electric — led by a 33% gain in General Motors and double-digit gains in more than half of the average’s components. “It’s amazing what $20 trillion in liquidity will do in the world, won’t it?” says Greg Church, founder and CEO of Church Capital Management. “There are a lot of dollars floating around.” Weakness in Monday’s activity was hard to find, outside of the aforementioned GE, gold stocks, short market ETFs, and a... [read full story]