Opening rally on Citibank profits false
Tuesday opens with a three digit rally on Citibank showing profits for the first two months of 2009. Play it but beware of the longer term, the Citi information may be a positive blink but drowns on the global map and can also in part be a reflection of accounting arrangements. This is a false rally.
According to CCN Money: “Bernanke also said he would not support the suspension of the mark-to-market rule, an accounting rule that many think has exacerbated the credit crisis. A House panel hears testimony on mark-to-market accounting Thursday.
“What is necessary for confidence to return in the marketplace is a host of positive statements, beginning with Mr. Obama on down,” said Peter Cardillo, chief market analyst for Avalon Partners.”
One might agree to both but the fact remains that from now on, nothing will be the same again. Those that recognize this will profit. Those who don´t will cimmit the same mistakes as recently seen.
This kind of quick pushes based on small glimmers of information, hope, positiveness will be a continuing trend. One step ahead, two steps back. Not just the Dow, globally.
A gravel road develops potholes in rain, not dutring the dry season, get it?
Related posts:
- Hot gains on continued Dow rally
- Global market madness opening week
- Dow positive opening
- Thursday NYSE opening down
- Strong rally brings Dow Jones over 10000 – again
Seed Newsvine
