Monday, May 19, 2008

Marketwatch Flip-Flop

Too late to see both headlines over at Marketwatch now, but the first one was (paraphrasing): Market surges as recession fears dwindle.  The headline after the close was (paraphrasing):  $127 oil stymies bulls.

Uh, okay! 

Lets try to rationalize the Marketwatch flip-flop.  I think we can do it using what we know from my last post.  The buyers were enthusiastic this morning hearing "no recession ever again," and sent stocks higher  But once they heard "free Oreos on the highway," they left their desks and went to pick up some double-stuffs.  Thus, the sellers the only ones left at their trading desks to drive the market down, rationalizing that if folks are spending all their discretionary income on fuel to drive down the highway to pick up free Oreos, they won't be able to shop.


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