GM contract and Buffet Rumors

Market, when made its mind, react selectively to the news.

On one hand, we have bad durable goods order, on the other hand, we have GM reach the deal with UAW, and the market choose to ignore the former and race to the high responding to the later.

However, today's trading is a little different from several days ago,  several high fliers turned lower and some lagging stocks get pushed higher. It seems like that some people made enough money and chose to cash out in a strong day.  By the noon, major indexes gave back almost half of the gain.   However, a rumor (reported by NYT, an authoriative news media) hit the news wire that buffet is buying 20% of Bear Stern.  Even though, there is no confirmation from Bear or Buffet, market resume its projectory to the high..   Although, this is not the first time that there is rumor surrounding Bear Stearn, people still pushed the stock and other financial stocks higher, true to the saying "buy at the rumor, sell at the fact".

I was not in the camp of theory of conspirace, but sometimes, some news just made me suspisious, especially the timing. Maybe it was right that current market is really a "pump and dump" schema.  maybe, the computer trading program all gear towards to push the DOW to pass 14000 again...  I do not know.   See, if you trade enough, you become cynic :)

Tomorrow, we are facing another test of GDP and jobless claim..   however, based on the market's reaction to the news of last two days, maybe it will provide amunition to go higher if the news are good, or the market ignore the news if they are bad.   or even better, we will have another piece of good news in M & A to push the DOW pass 14000...

SMH has down 3 days in a row now, with all the hoopla of tech boom, how could smh lag behind the tech in general?  that is the myth to me... 

well, hopefully, tomorrow is another profitable day