Why The Rally This Week?

This bull market has been driven significantly by quantitative traders. That means investing has favored those who understand technical trading. Even if it is very simple concepts like trend lines. So, the market blew higher this week with a massive rally. Mostly in financials. There are many who are going to believe the economic circumstances unfolding are specific to the housing concerns be it debt instruments or the real estate market itself. They are completely wrong. But, that doesn't mean some investors don't see perceived value in some financial investments with very large dividends. So, is the rally tied to sovereign fund investments in Citigroup? The mortgage bailout proposed by government officials? A seance performed by central bankers? Other topics discussed by the financial media? Well, how about the fact that market players ran the S&P down to its bull market trend line where every short to intermediate term market participant was going to go long? Nah. That would mean all of the reporting in the financial press as to why we had this rally would be completely erroneous and everyone believing it would be completely wrong.