Thursday, July 22, 2010

When markets make no sense - the rallying side

10:39AM, 7/22/2010 - S&P500 up 2.48% hmmm, let's check the headlines:

Existing Home Sales Fall 5.1 Percent
Most Americans think economy yet to hit bottom
Job seekers' latest hurdle: Credit checks
Fed ready to ease if economy weakens: Bernanke
Jobless claims jump in latest week

Meanwhile, netflix beats expectations and falls 11%... (reasons found: analyst downgraded - increased cost of doing business)

Investing is synonym with putting your money in risk, and continuing recognition that you don't understand why things go up or down. To recap, at end of April the only headlines you'd find were overly optimistic - followed by a 15% correction in May June. By the end of June - the news cycle focused on a double dip recession and a long term depression. Mid July - and here we go again... makes no sense.


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