The Dow Jumps 300 Points on Scarface High
Posted October 27th, 2011 by theStockMasters...
All the major indexes are up over 2%, the S&P 500 is almost up 3%. Pardon the Masters for not believing the rally is going to last as the high frequency trading robots enjoy a coke fueled Tony Montana kind of euphoria.
We are all for equities going higher, its why we started this site back in 2006. However it pays to be sensible and the news of the EU breaking bread isn't what it seems -- the details are not final. What it proves is that U.S. equities are dependent on the EU fixing the EuroTrash situation.
Jens Larsen, chief European economist at RBC Capital Markets in London said it best -- . "It remains a deal long on intentions and short on details...Until we know how the mechanisms will work, it will be hard to judge whether this will be sufficient to entice investors to provide support to European governments."
For more on what happened at the EU meeting, visit Bloomberg.com -- European leaders bolstered their crisis-fighting toolbox with a plan that may generate only limited relief for stressed sovereigns unless it can be fleshed- out within weeks.
MASTERY Bottom line: The EU debt problems are far from over. Sell on this news without second thought.
There is no bullish rally, just bullshit.
We would love to be wrong on this, we even hope we are. However headlines are ruling the markets, not fundamentals.
All the major indexes are up over 2%, the S&P 500 is almost up 3%. Pardon the Masters for not believing the rally is going to last as the high frequency trading robots enjoy a coke fueled Tony Montana kind of euphoria.We are all for equities going higher, its why we started this site back in 2006. However it pays to be sensible and the news of the EU breaking bread isn't what it seems -- the details are not final. What it proves is that U.S. equities are dependent on the EU fixing the EuroTrash situation.
Jens Larsen, chief European economist at RBC Capital Markets in London said it best -- . "It remains a deal long on intentions and short on details...Until we know how the mechanisms will work, it will be hard to judge whether this will be sufficient to entice investors to provide support to European governments."
For more on what happened at the EU meeting, visit Bloomberg.com -- European leaders bolstered their crisis-fighting toolbox with a plan that may generate only limited relief for stressed sovereigns unless it can be fleshed- out within weeks.
MASTERY Bottom line: The EU debt problems are far from over. Sell on this news without second thought.
There is no bullish rally, just bullshit.
We would love to be wrong on this, we even hope we are. However headlines are ruling the markets, not fundamentals.
