Seems like the only thing that can give the markets a down day is a combination of : 9.0 earthquake + major tsunami + Nuclear disaster + a new middle east war + terrible economic data + impending sovereign default in Europe and even then the market is back up after a couple of days like nothing happened Amazing what FED+QE can do.
Ghost of Cutten, you seem very knowledgeable about these things and so I would like to ask you related question, something that's been gnawing at me for the better part of year, possibly longer: What does it mean when Goldman Sachs upgrades a stock from "Conviction Sell" to "Sell"?
Maybe im just being naive but i thought maybe the housing index should not be at a 2.5 year high, up over 100% from the bottom. Guess I was wrong looks like another huge up day today this is clearly a V shaped recovery.
1) The stocks "respond" as they should but you can't expect them to keep on following through in the "logical" direction indefinitely. 2) Too much trading activity is short-term oriented. When a stock appears to exhaust itself in one direction, it has to reverse itself in order to "create/attract" trading volume. Trendiness has been replaced by mean-reversion.
I am short PHM and KBH. Sell the rumor buy the news has always been the way shorted stocks going to hell act. Fleetwood Ent. Champion Ent. and Monaco Coach have all been my victims. Come with me if you want to live.