David Moenning's Daily State of the Markets: 7/25 Jul 25, 2008 09:36AM

Bump and Run
Here's a link to listen to an Audio Version of the report: 

I saw an AP report yesterday afternoon where the first line read, “Wall Street abruptly ended an earnings-driven rally and closed sharply lower on Thursday…” My problem here is that anyone believing that the recent bounce higher in stocks was “earnings driven” is delusional. As we’ve mentioned a time or two over the past week, the blast seen in stocks since the 15th of July had little to do with earnings and a lot to do with a legislative induced short squeeze.

Unfortunately however, the rest of the line wasn’t much better as the writer continued with, “…a steeper-than expected decline in existing home sales and worries about the financial sector chilled the market’s recent enthusiasm.” And while I will award the author style points for the bit about the market’s enthusiasm suddenly becoming chilled ...