And There Goes the Bailout Rally

The chopfest in this market continues. I assume a lot of fingers and toes are being cut off by the action the past few weeks. Yesterday the market went out on the highs, as poor economic news was forgotten and bailouts cheered. The S&P 500 sat above key resistance areas. Cowered bears thought “here we go again, another V shaped bounce”. Today, everything has been reversed… and some. The 50 day moving average held up the market all morning, but just broke. Amazingly the 10 year bond is at 3% – equity investors don’t seem to be asking why the flight into bonds the past 6-7 weeks. Normally this indicates economic SLOWDOWN ahead.

You have to be extremely fast on your trades in the current market, because they reverse very quickly.

About Mark Hanna 543 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

Visit: Market Montage

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