It won’t work and the spike won’t last long...
What I am thinking at this point is that the downgrades of the US banks (especially certain ones like BAC) and stress on the European banks triggered an emergency reaction…the implications are that the wound will still be there after the bandaid is put on…this will not heal so fast…the blood is in the water…yet now a large contingent of the market is now long or stopped out of their shorts yet again…perfect conditions for a signficant reversal.
All is not what it seems…and, moreover, the government seems now to be in the business of instigating economic data that allways comes in a few standard deviations above expectations for every announcement. I wonder what the real numbers look like?
