Fed cuts discount rate

A discount rate is good news and undoubtedly means that the banking sector will see an uptick today. What is in question is the mood of the market. Will this create a sustainable rally? The Dow did touch the 12500 support yesterday before bouncing. We are at a turning point and until more is revealed regarding the subprime issues its hard to tell where we stand. Regardless, the issues with subprime has made lenders nervous and the sudden restriction in lending standards has limited the market for sellers. Housing is in for a long recovery. I will be keeping and eye on Banking, Finance and Technology for the next 30-60 days.