The blog Global Economic Anaysis highlights many of the news headlines on current topics. Some of them are:
Japan’s Factory Output Falls as Turmoil Hurts Exports
LandAmerica Goes Bankrupt
Lead Falls to Two-Year Low as Auto Demand Slumps; Copper Drops.
Housing is bad enough, but wait — it'll get worse
China downturn deepens, European rate cut sought
Malls, hotels next victims in new mortgage crisis.
Woolworths Near Collapse, Risking 30,000 U.K. Jobs
Shopping malls are running on empty
Satellite Halts Hedge Fund Withdrawals, Fires 30 After Losses
FDIC adds 54 more banks to its 'problem list'
Survey says Texas manufacturing outlook is bleak
I think you get the idea. News in this blog is about recession and depression.
Well, there is one more news item in Bloomberg. This headline says:
Stocks in U.S. Climb; S&P 500 Index Posts Biggest Weekly Gain Since 1974
So, what's going on ?
Possibility 1. The Markets have already discounted the bad news. The bear market is over.
Possibility 2. The markets are going through a bear market rally, probably disconnected with the 'real' world. This happens often. (Example: the boom in real estate stocks in India. Since 2006 September, I have been saying on CNBC - "the real estate stock price boom cannot be sustained. Share prices are going up on the wrong premise that companies will buy land for pennies, then sell it for millions. The business model is flawed because land is a very sensitive issue in India. But, brokers and fund managers went on singing the praises of these stocks. They were completely out of touch with the Indian environment.)
My own understanding is that we are in a bear market rally. More details in my previous post, here
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Arthur Brooks, The Battle
► 2011 (200)
- ► November (9)
► October (28)
- Answers to comments oct31-11
- Process of Consolidation Likely
- Nifty Pattern Targets Reached
- Happy Diwali
- Stock Selection (based upon their historical volat...
- M&M Consolidation
- Niftnear ORB Trade
- A dip in an ongoing up trend
- TATA Motors Life Cycle
- Hindalco touches support
- Mystery of the missing trailing stop
- Nifty Live Oct 12-11
- Point and Figure Charts
- Aiming for a better trade
- Long term view of Nifty
- Zen stories for Traders
- Hero Motor Corp at its support level
- NR 7 in Nifty Weekly Chart
- trading with a gap open
- Silver Pushes against Resistance
- An unusual continuation pattern in the Nifty
- Sudden Rally
- Nifty at 4750
- There is a time to be old and a time to be bold
- Afternoon review
- Nifty - Long Term View
- Higher High - Higher Low pattern in CNX IT
- Bear market shows its strength
► September (53)
- The Bear Story
- Nifty in a well defined range
- Morning View Sept 29
- Nifty Options Trade
- Nifty on way to close higher for this F&O settleme...
- Learning Ideas
- Short term trend is up
- Something Better
- A tale of two trades
- Before the Open - Sept 26-11
- Reliance - something better
- Nifty - A long term view
- Adding value to your analysis
- ► 2010 (263)
- ► 2009 (293)
▼ 2008 (219)
▼ November (26)
- Weekend Reading, Nov 30.
- Rally, maybe
- This time it may be different
- Market will tell us when it is bottoming out
- Hard Work is the easiest way to success
- New Posts
- This Bear Market may last longer than we imagine
- Is there a rally ?
- Traders enjoy the process of trading
- Bear Market continues, Nifty, Sensex may go below ...
- Choppy Market with down bias
- What should Investors do now ?
- Nifty returns for a 'Test' of earlier lows
- The trend remains down
- A Matter of Trust
- Udayan in Amritsar
- Early Morning Review - Friday 14 Nov
- It is not about earnings downgrades
- Abrupt End to Uptrend
- Has the Bull Market Started ?
- The 2 PM Review
- So much volatility, Market resembles a Casino
- The Market Corrects its up trend
- Smart Rally, but careful as Nifty comes near resis...
- Quite times coming ?
- Surpirse Rate Cut may not add strength to markets
- ▼ November (26)