Thursday, July 17, 2008

You know you're in a bear market counter-rally when...

Wachovia headquarters is raided by securities regulators in an auction-rate probe.

After briefly dipping into negative territory, the stock is up over 10% on the day.

JP Morgan warns of potential losses in its prime loan portfolio.

The stock gapped up and is currently up over 10% on the day.

To see how long this rally can run, keep watching stock price reaction to the news. In the coming week or so, I think there will be many more revelations and negative stories met with stock gains.

Apparently the stock market just needed some bad news to allay investor's fears.

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