Most of the world’s stock markets rallied strongly Tuesday, with financial stocks enjoying a rare day of support after a leaked memo from Citigroup Inc. indicating that the troubled U.S. banking giant enjoyed its best financial performance in over a year during the first two months of 2009.
My understanding is that at the end of last week, Treasury Secretary Timothy Geithner, closed a loophole in the rules about trading on margin. Trading on margin basically means that you’re betting for the stock to go down and when it does go down – the investor makes money. By tightening up margin trading regulations we’ve had a very nice rally the last three days in a row.