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Lost Cause: Stock Markets Surge On Hopes And Dreams

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September 27, 2011 – Comments (1) | RELATED TICKERS: SPY , DIA , QQQ

The markets are surging today on major optimism over the European debt scenario. Late yesterday, news broke that the powers in Europe are preparing to handle the crisis with major initiatives. These initiatives will mirror those done by the United States in 2008. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $118.89, +2.65 (+2.28%).

The markets continue to go through panic and fear, then hopes and dreams. This possible deal will turn out to be reality soon. However, it will not save this market in the short term. It will not restart the global economic engine or save European countries from collapsing down the line. It will work as a small band-aid.

To see the reality of the situation, one must just look at the recent New Home Sales data. This data was the worst on record in terms of buys over the last 6 months. Without the housing market, the economy will not recover. In addition, unemployment has remained at the highs for years now. Lastly, let's not forget the next collapse on the horizon in the United States. States like California are just as bad off as Italy and Greece. Will they get the next bailout?

This sharp bounce in the markets will fade. New lows will be seen and panic will set back in.

Gareth Soloway
InTheMoneyStocks.com

1 Comments – Post Your Own

#1) On September 27, 2011 at 12:42 PM, Teacherman1 (57.98) wrote:

Are you the new Alstry?

You have 4 blogs here at one time, and no picks, no useful advice, just attempts to get people to go to your site.

Give it a rest.

If you want attention from here, why not buy an ad, that seems only fair.

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