Why the surge in the stock market lately?

[JEDI]

2 weeks ago, the S&P dipped into bear territory (20% drop from it's 52week high).
then we had a surge of positive days. heck, nasdaq hasnt closed negative since then. (8 straight days)

2 out of the 3 major indexing are back to break even and the 3rd one is almost there.

so europe is getting a better handle on it's debt crisis.
but why would that cause such a HUGE surge not seen since 2009?

 

[Engineer]

Dead cat bounce?

 

[Pardus]

Ever since Steve Jobs died, the economy has been slowly improving.

 

[luv2liv]

watch how its going to fall really hard again. europeans do whatever they want to delay the inevitable...

 

[mshan]

Short covering rally, taking an European Lehman Brothers lite cascade off the table?

SP500 1200 - 1250 seems about fair value to me, given all of the other bad news around the world (mild global recession, but no repeat of 2008 end of Western civilization fears)

 

[JEDI]

watch how its going to fall really hard again. europeans do whatever they want to delay the inevitable...

prob not this mon.
futures are up 175 points!

 

[Locut0s]

The entrails and tarot cards said BUY.

 

[JEDI]

Dead cat bounce?

thats one hella of a bounce.

if its like the MArch 2008 US stock market, we're going to double in 2yrs?!

 

[JEDI]

The entrails and tarot cards said BUY.

oh yeah.. bought $100k on the day the s&p went into bear territory.

up 40k in 2 weeks.
YEEEEHAAAAAAAAAAAaH!!!!!!!!!!!!!!!

 

[Engineer]

thats one hella of a bounce.

if its like the MArch 2008 US stock market, we're going to double in 2yrs?!

yet we were lower after 2 years than mid 2007...it's relative to how far we fell at the time

 

[IronWing]

Spidey refied and is dumping the money he would have been paying toward his house into the stock market. With that kind of infusion, it simply had to go up.


Edit: Also, go read my stock market prediction post. I've been 110% dead wrong since August. The harbinger of a rally should be when really good news pours out of the super secret committee.

 

[FoBoT]

the chance of a euro collapse is viewed as lessened by efforts of germany and france
i.e. greece and italy and spain are being bailed out by ECB
i.e. EU has decided to kick the can down the road, i.e. put off the inevitable collapse for a while longer

 

[OverVolt]

Liquidity problems in the EURO are causing the EURO to go up causing automated algo's to buy thinking USD inflation despite the obvious crisis.

And short covering. And lots of other bullshit. I expect a big crash.

 

[Miramonti]

The rally imo was just a reversal of the market being undervalued for the time being. It doesn't have much more room to go on the upside before it heads back down another 5-8% imo. I believe these last few moves from the end of July (where the market was temporarily overpriced) are from the standard operators of volatility over time, not news.

 

[mizzou]

without an increase in wages, it's a paper tiger

 

[FancyTurtle]

2 weeks ago, the S&P dipped into bear territory (20% drop from it's 52week high).
then we had a surge of positive days. heck, nasdaq hasnt closed negative since then. (8 straight days)

2 out of the 3 major indexing are back to break even and the 3rd one is almost there.

so europe is getting a better handle on it's debt crisis.
but why would that cause such a HUGE surge not seen since 2009?

Obama got a hair cut.

 

[FoBoT]

http://www.usatoday.com/money/markets/story/2011-10-17/stocks-monday/50801734/1

Stocks gave up gains after a German government spokesman said a solution to Europe's debt crisis was not likely to be reached at a meeting next week. Earlier Monday, optimism that the European debt crisis would be resolved at next week's EU meeting put overseas markets in a positive mood.

http://www.thestreet.com/story/11278359/1/stock-futures-oct-17.html?cm_ven=GOOGLEN

The Group of 20 finance ministers meeting in Paris over the weekend pledged to support capital needs of eurozone banks, while the European Union vowed to make sure the bailout fund is used in a way that maximizes its effectiveness. However, a spokesperson for German leader Angela Merkel warned on Monday that progress would be slow.

 

[Jaepheth]

High volatility.
Deal with it.

 

[CRXican]

I am job

 

[IceBergSLiM]

more bailouts and QE in the pipeline

 

[sactoking]

Obama got a hair cut.

This answer, while obviously facetious, is just as likely as any other given in here. Narrative fallacy FTL.

 

[JeffreyLebowski]

It's more likely the people on Wall Street see the Occupy Wall Street protestors, and Wall Street is in kind giving them a big FU and making more money.

 

[rcpratt]

It's more likely the people on Wall Street see the Occupy Wall Street protestors, and Wall Street is in kind giving them a big FU and making more money.

Yeah, that must be it.

 

[gorcorps]

If anybody knew how the market worked, we wouldn't be where we are now.

 

[Corporate Thug]

investors are realizing the US isn't as tied to Europe as the media makes it out to be.