Had you said on Monday that the ASX would finish the week in the black, anyone would have thought you were crazy.
Yet against all odds, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) looks set to post a gain for the week with the market once again trading higher today.
The local sharemarket suffered one of its worst single days since the Global Financial Crisis on Monday, sliding 4.1 per cent in a broad sell-off. It closed at just 5001 points, down from 5214 on Friday, and then slipped another 1.5 per cent to a fresh two-year low of 4928 on Tuesday.
Remarkably however, the market then went on to record one of its strongest gains in recent history, ending the day 2.7 per cent higher at 5137 points. It has since risen to 5270, including a 0.7 per cent gain today, with the ASX on track to record a weekly gain of 1.1%, or more.
Today, it is the nation's oil producers providing the drive after the resource climbed nearly 10% overnight, sparked by reports of a diminished crude supply.
BHP Billiton Limited (ASX: BHP) rose a staggering 5.5% while Santos Ltd (ASX: STO) and Liquefied Natural Gas Ltd (ASX: LNG) were also up 4.1% and 7.8%, respectively.
Elsewhere, shares of Slater & Gordon Limited (ASX: SGH) have cooled down after rising as much as 20% earlier. They're now trading 7.1% higher, while Woolworths Limited (ASX: WOW) is up 1.6% despite a massive slide in net profit for the year ended 30 June 2015.
The market's remarkable turnaround over the last four trading days is testament to the 'Foolish' way of investing. That is, time in the market as opposed to trying to time the market.
Investors who sold into the panic on Monday or Tuesday morning have missed the subsequent 7% relief rally which has rewarded those investors who kept their emotions in check. With the market still well below its high levels from earlier in the year however, it's by no means too late to buy back in.
In fact, thanks to the market's recent crash, ASX stocks haven't looked this appealing in years…
