26 May 2009

What Caused This Rally?

"Consumer Confidence" came in higher than expected based on numbers from The Conference Board. The market started rising well ahead of the release of this 'news' which is no surprise as the source is a somewhat leaky bucket.

This despite the housing data in the Case-Shiller Index which was much worse than expected.

Our take is always that those who look for fundamental reasons for short term market moves are often on a fool's errand.

The reason for this rally today is best captured by an old stock market adage.

"Never short a dull market."