Hmmmmmmmm …….

Remember this?

Rally from 1075-ish to 1120-ish in under an hour, seemingly on the back of this story:
EU ministers look at bank aid plans
http://www.ft.com/cms/s/0/b1219a20-eeab-11e0-959a-00144feab49a.html#axzz1ZrvPyLCD

The thing was, this wasn’t really ‘news’. There was nothing new about it, it had been around all day … but the market rallied hard on its back after the FT published it.

And now this, from October 18:

Rally from 1190-ish to 1230-ish, seemingly on this:
Stocks Through the Roof on Report of 2 Trillion Euro EFSF
http://blogs.wsj.com/marketbeat/2011/10/18/stocks-through-the-roof-on-report-of-2-trillion-euro-efsf/
Again, this wasn’t ‘news’ (see this).

Anyone else going “Hmmmmmmm….?”, or is it just me?

Obviously the fierceness of these rallies would not have come about without the market being well short, and those being poorly located shorts at that. But is there maybe more to it than just short-covering?

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