Market Review and Trends
Is the January 2012 rally the real McCoy or another false dawn similar to October 2011 ?
By Kevin Scully-Financial Blog  •  January 30, 2012
Is the January 2012 rally the real McCoy or another false dawn similar to October 2011 ? Monday, 30 January, 2012  3:27 PM Posted by Kevin Scully  The October 2011 stock rally – STI rose from 2630 to 2904 before moving down to the 2600 level until the rally in early 2012 (see chart below). Chart 1: STI Index Oct 1-31, 2011  

The October rally was attributed to three factors:

a)      a technical rebound following a huge sell off in August when S&P downgraded the US’ triple A credit status

b)      better than expected corporate earnings

c)      EU Finance ministers approving a EU 5.8bn loan to Greece

The Jan 2012 rally seems to have more legs than October 2011 or does it ??!! 

The Jan 2012 rally saw the STI Index rise from just under 2700 to an intra-month high of 2915 ...

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By Kevin Scully-Financial Blog
Kevin began his working life in the regional and economics division of the Ministry of Foreign Affairs. He then moved to the private sector analyzing equities before venturing out to start NRA Capital. After 25 years of watching stocks and living through financial disarray during the Pan Electric Crisis, the 1987 Crash, the Barings debacle, the Gulf War, Asian financial crisis - what can sub-prime do but add another scar to already bruised wounds. Ever since starting his blog, Kevin has been enthusiastically giving his personal views on the market. He discusses about equities, the market turmoil, and the broad economy.
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