Breakthrough Reached in Negotiations on Bailout - Final deal sought before Asian markets open

Finally, the D-day came and it is Monday, Sept 29th. Congress is going to pass $700bn bailout package before Asian market opens on Monday. Basic question on everyone's mind is.........

"What would be the direction of global equity market after this bailout package?"
But every one agrees on one fact, "Inspite of this bailout package this financial crisis is not going to get resolved or at least we need more that $700bn & time to fix this issue".

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HBJ Capital's View on this development is.....
"Expect global market to cheer up for sometime because equity market has already fallen enough due to uncertainty & delay in approval of this package".

It would be better to go for LONG position now, and if market really bounced back then short covering will push it further. Now the question is "In case if market bounce back, how long it will continue?" Hmm, We don't know, timing the market is close to impossible. Let see how events are unfolding and react to the news rather than going into predictive mode.
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News Update...

• Congressional leaders and the Bush administration reached a tentative agreement early Sunday on what may become the largest financial bailout in American history, authorizing the Treasury to purchase $700 billion in troubled debt from ailing firms in an extraordinary intervention to prevent widespread economic collapse.
• Congressional staff members would work through the night to finalize the language of the agreement and draft a bill, and that the bill would be brought to the House floor for a vote on Monday.
• All of this was done in a way to insulate Main Street and everyday Americans from the crisis on Wall Street. In announcing a tentative agreement, lawmakers and the administration achieved their goal of sending a reassuring message ahead of Monday’s opening of the Asian financial markets.
• The bill includes.... #1. Pay limits for some executives whose firms seek help #2. Government to use its new role as owner of distressed mortgage-backed securities to make more aggressive efforts to prevent home foreclosures #3. In some cases, the government would receive an equity stake in companies that seek aid. #4. Allowing taxpayers to profit should the rescue plan work and the private firms flourish in the months and years ahead. #5. The money will disbursed in parts, with an initial $250 billion to get the rescue effort under way, followed by another $100 billion upon a report by Mr. Bush to Congress. #6. The president could then request the balance of $350 billion at any time. If Congress disapproved, it would have to act within 15 days to deny the Treasury the money.
• The ultimate cost of the rescue plan to taxpayers is virtually impossible to know. Because the government would be buying assets of value — potentially worth much more than the government will pay for them — there is even a chance the rescue effort would eventually return a profit.