If each marginal Fed action was relevant to the continued health, well-being, and solvency of this market and financial institutions....shouldn't a disappointment of "only" 75 bps have knocked something off the S&P?
And if each Fed action doesn't really mean that much, or anything at all, then why are they cutting so much when they're clearly worried about inflation (or would be, if they weren't worried more about other stuff)?
Perhaps the Bear Stearns failure really was the climactic event that marks a short-to-intermediate term bottom...though the index price action on the day was hardly climactic.
Or maybe this is just the latest sucker's rally, a hallmark of bear markets.
But if markets are rallying because they think that the Fed has its mojo back (in terms of getting traction on policy easing), shouldn't gold be rallying?
Maybe the real answer is that these short term reactions are all noise, to be forgotten as distant history in a week's time.
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