Markets Surge With MONSTER Wire-To-Wire Rally: Here's What You Need To Know

The Business Insider ^ | 6-10-2010 | Joe Weisenthal

[blam]

Markets Surge With MONSTER Wire-To-Wire Rally: Here's What You Need To Know

Joe Weisenthal
Jun. 10, 2010, 3:59 PM

Finally! The bulls didn't blow it. Stocks started hot, and ended even hotter.

First, the scoreboard:

Dow: +275
S&P 500: +31
NASDAQ: +60

And now, the key stories of the day.

* At least for one day, all the key "risk on" signs were flashing. It wasn't just stocks, but also the aussie dollar, the euro, and the decline of gold.

* BP staged a major turnaround after yesterday's bloodbath. There's still nothing good on the ground, but for now all the fears about immediate bankruptcy seems to have passed. Don't miss: 15 major companies zooming towards bankruptcy >

* Shares of Goldman failed to take part in the rally following revelations that the SEC is looking into brand new CDOs beyond ABACUS. See the 20 winners and losers from the Goldman scandal >

* The economic news of the day was mixed. Weekly jobless claims were predictably mediocre. On the other hand, China confirmed that its exports are growing, once again, at a very rapid clip.

[snip]

[blam]

Click here to see the daily DJIA tracking chart.

[Cletus.D.Yokel]

Wasn’t there a scheduled sale of notes by the Fed today? Must have been promising.

[mn-bush-man]

Dead Cat Bounce

Double-dip well underway (among all kinds of other smuck hitting the fan)

http://railfax.transmatch.com/

[Revel]

One world. Manipulation. There simply was no news that this would be caused by normal forces. There was news that should have driven it the other way.

[Uncle Ike]

Here’s what you need to know - about once a week, the market stages a rally like this, and Weisenthal goes dancing naked in the street...

Then, there will be 4 or 5 consecutive ‘down’ days, during which the “monster rally” gains dissolve, and then some...

But, never fear, there will soon be another day giving Weisenthal an excuse to ‘shuck’ and ‘jive’.... ;)

[Captain Peter Blood]

I do not believe that China’s export market is reviving or growing. Where is the growth coming from???????????
As of last fall 25% of the Pacific cargo fleet was at anchor in Asia.

[Mr. Jazzy]

Correct.

Weisenthal is an Odumbo butt boy.

[what's up]

There simply was no news

Actually there was.

China's statement that it was not impacted by the Euro collapse drove a lot of the momentum.

[Thurston_Howell_III]

I’m not buying that the news is even playing a role here, over the last few weeks the volatility has been out of control, up a ton, down a ton, up a ton, down a ton. Nothing to get worked up over here today.

[RobRoy]

Worse, it’s fall of 2008. Wild swings in both directions before the inevitable freefall.

I’ll say this though, I usually see big moves in gold or the dollar reflected in the other in the opposite direction in the market. That is, gold up, market down. Gold down, market up.

[what's up]

It's logical that volatility over the last while would be there because there was a lot of uncertainty over the Euro. So when China makes a statement like it did of course that will raise hopes and cause a rise in the market.

News is definitely a factor. It is every day.

(BTW, McConnell's statement that he was absolutely certain that the Dems' energy bill would not pass also likely played a role. If you noticed today, energy stocks were up a LOT.)

[Thurston_Howell_III]

Well of course its a “factor” but really you also saw support of BP from the UK in the news, you saw WTI crude up on a down dollar, and I think the USD price via the dollar index is why the market was up today.

[OB1kNOb]

The market acts like the front wobbly wheels on a car going 80 mph. It shimmys a little at first one way and then the other, then right before the tie rods drop, the wheel shakes violently first this way and that, then the both wheels come off followed immediately by a wildly irratic out of control slide down the embankment ending up in a flaming ball of crash and burn.

[Fishface]

Why should anyone believe anything that China says? They are a Communist country. The older I get, the more it becomes evident that everything is corrupt.

[The Duke]

Either manipulation or inflation.

[RobRoy]

>>The market acts like the front wobbly wheels on a car going 80 mph. It shimmys a little at first one way and then the other, then right before the tie rods drop, the wheel shakes violently first this way and that, then the both wheels come off followed immediately by a wildly irratic out of control slide down the embankment ending up in a flaming ball of crash and burn.<<

Excellent analogy!

[what's up]

Ummm...that’s all news.

[what's up]

Well, you may not believe what China says.

But when they speak, industries that are tied to China take heart whereas they would wobble if China came out with negative words.

This doesn't have any bearing on where we'll be 10 days from now, mind you, but investors took heart today and that's why the market went up.

[Thurston_Howell_III]

umm...by that definition everything is news.

[Uncle Ike]

” umm...by that definition everything is news. “

Could it be that everything is ‘News’ that’s not ‘Olds’??