• First they used Bernanke who (almost) explicitly said that rate cuts are coming. The market made a small rally around 12:15pm, which was completely reversed by 2pm
  • Ok, then they released the rumor that Countrywide got acquired. The market made a nice short squeeze from 2pm to 3pm, but after 3:30pm the rally started to fade
  • Oil sold-off, i.e. less of inflation worry and good rotation from oil to stocks
  • Bonds also sold off, i.e. money rotated into stocks

And after all this bull-fest the S&P is up only 0.8%? That’s all they can pull out of this?

Many shorts were shaken out from their positions and many smart money got a chance to unload. It seems to me that a big crash is coming within the next 3-4 weeks and that crash will get through the March lows like a knife through the butter. It’s a bear market and it has its rules that better have to be respected