Assigning Reasons to the Unreasonable

The market defiantly rallied about 5% today, which was altogether unremarkable despite being the 3rd largest DOW gain ever point-wise (as if points mattered in such statistics).  The media made various attempts to explain the market rally, stubbornly continuing their daily ritual of telling us why the markets move as they do – as if they have a clue.  We would all be better off if they just reported what happened instead of trying to explain why.

A quick rally after a steep sell off requires no explanation – that is simply how the market works.  Bear market rallies are always sharp, as they try to suck in those who feel that they are missing out on such a huge rally.  Did we already forget the staggering rally of just two weeks ago?  Not until the market coaxes the last sucker in or out will it turn around on whatever unfathomable queue guides its path.  And if you haven’t learned yet, when this market turns, you had better not be standing its way.

May October not maul your portfolio!