A Bull's guide to the market

[Canmorite]

Got this in my e-mail.


Just got the following email, which is circulating in the City, from a trader:

There is an analyst cheat sheet doing the rounds on how to react to data and market releases in the current market.

Weak data - Fed ease, stocks rally.

Consensus data - lower volatility, stocks rally.

Strong data - economy strengthening, stocks rally.

Bank loses $4 billion - bad news out of the way, stocks rally.

Oil spikes - great for energy companies, stocks rally.

Oil drops - great for consumer, stocks rally.

Dollar plunges - great for multinationals, stocks rally.

Dollar spikes - lowers inflation, stocks rally.

Inflation spikes - will inflate all assets, stocks rally.

Inflation drops - improves earnings quality, stocks rally.



http://blogs.telegraph.co.uk/business/marketforces/oct07/bullsguidetothemarket.htm

[Frosty]

Along the same lines, here's one from today:

WASHINGTON (MarketWatch) -- As odd as it sounds, the government reported that inflation was at a four-decade low in the third quarter, primarily because import oil prices rose so much.