What is up with this rally?

[saluki]

- Jan sales up .3%
- Treasuries fell
- Crude oil inventories rose less than expected causing oil price to rise
- Bush signed $170B stimulus package

 

[turkeyneck]

Get ready for Valentine's Day massacre.

 

[virtualmoney]

It's valentine's day tomorrow

 

[S2007S]

SELL THE RALLY.


Last time the dow ran to 12700+ everyone was thinking theres nothing wrong with the economy, days later the markets dropped 5%+. Sell the rallies buy the sell offs, simple as that. The economy didnt get better because the dow rallies 150+ points....

 

[makloda]

Quote from Ivanovich:
If there is good news, carry trades rocketing, metals up and the market is down, I would ask a similar question.

Carry trade strategies have become more uncorrelated to daily SP500 returns about 1 month ago: http://img220.imageshack.us/img220/2659/63411776fh3.png

Might just be a temporary disconnect.

 

[S2007S]

Quote from abducens:

didnt Bush sign the stimulus bill? we are saved!

yep, thats it, 150+ billion added to the economy makes everything better.

 

[Warrior4g]

the street senses that the current administration will do anything to prop up the economy;the signing of the stimulus package is really what did it today.also,options related to an extent i would imagaine.

 

[Pilotboy]

Think about how much money came out of world markets in January. Now that money is getting put in different places. New trends will be started.

 

[DataCruncher]

I wouldn't be surprised if at 3:45 or 3:50 a algorithmic selling program triggers a selloff. lately it seems like the market has been brutal as hell, reversals at the last minute

 

[Ivanovich]

Quote from makloda:

Carry trade strategies have become more uncorrelated to daily SP500 returns about 1 month ago: http://img220.imageshack.us/img220/2659/63411776fh3.png

Might just be a temporary disconnect.

Excellent graph, much appreciated. Now, don't you feel better providing a possible answer rather than a smarmy comeback?