Most meaningless market move yet

the super bouncey ball went up...tomorrow the bouncey ball more likely to go down.

I didn't know that you guys were so sensible that way. Thank you.

While I'm writing, I'd still really like to see some data and graphics on "our greatest export has been debt." (IOW, our main export product is promises.) I don't have the wherewithal to deconstruct the national accounts competently. Love to see it...

Especially over a long period, like since 1920 or before.

Thanks.

Steve

No dead cat bounce? No VIX and market bottoms? That's no fun!

It's less meaningless, than overdetermined.

No bear market goes straight down. Almost all are punctuated with violent moves up often 20% or more. Best reason I heard was asset allocation rebalancing by pensions and endowments that have to stick to their allocations according to their IPS and quarter ends in 3 days right? Also, the institutionalized short funds(ETFs) are forcing more violent moves.

It's almost November. We know that October is the really bad month. And, more seriously, I see that home sales are improving in California. Apparently someone has enough money to take advantage of some great bargains.

If you believe:

A. The financial services industry has finished deleveraging and clearing overpriced assets.

B. The undeclared recession has peaked.

C. The current case of credit constipation is relaxing.

D. The hedge fund implosion is a myth.

E. The tsunami has finished washing up on global markets.

F. Businesses are performing much better than investors are willing to admit.

G. The current global debt/equity ratio fundamentally sound.

H. Equity investors are not an irrational school of fish.

I. Volatility has subsided...

By all means by stocks.

well there is always the "expected rate cut" coming from the Fed, which means that the stock market becomes a better place to put your money.

But my paranoid conspiracy theory is that Saudi Arabia, China, et al are converting their T-bills into cash, and buying up US Securities as a hedge against inflation -- with the Paulson literally just printing money to "save" his Wall Street buddies, inflation is nearly inevitable -- and getting out of the T-bill market before inflation hits (and buying securities whose values will increase with inflation) is a smart long term strategy.