Wednesday, October 5, 2011

The good news that rallied markets yesterday is actually bad news

Yesterday we`ve had a small rally into the close based on news that European states were going to recapitalize banks. News was hailed with small rally at the end of a bad market day in US, followed by a rally in Europe.

The irony of it is that this news is actually bad. It will lead to a cascade of country downgrades, which in turn will further spook investors and create a downhill market.

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