funny, since when is $12 billion gone from ubs and 4 billion gone from DB, and LEH raising cash good fundementals? why should ubs and leh be up 15%? i wasnt a perma bull and now switched, ive been saying this market was too high all of 2007 pretty much, and i think it is too high now. I doubt the writeoffs are done, and it will take along time for those companies to make back those losses and there is no way the market should be rallying almost 400 points today!
And yet it did. There is method to the madness but it doesn't lie in logical economic interpretations, certainly not in the short term and not for a move like today's. There is no economic logic that will explain why the market is worth 3%+ more this afternoon than it was this morning, there are lots of reasons though why people might FEEL that it is worth paying up from this mornings prices.
Dont let rallies like today fool you, up 400 one day down 200 the next, and if the dow breaks above 12800 dont worry, there isnt any catalyst to jump it to new highs....
I have no doubt whatsoever how you will be all over the next -100 day claiming on how you shorted the top tick of the rally.
Todays rally simply illustrates the ever widening disconnect between "main street" and "wall street". Common amongst third world countries, or those headed in that direction.
when stocks rally I just lose interest in high food and energy prices, maybe we could do this weekly???
The market defys all logic, always has and always will! Thats why when I trade my bias only lasts 10 minutes at a time.