Bad News = Higher Markets! Go Figure!

These are the headlines following the Fed's announcement yesterday of more easy money, which juiced the stock market. Interestingly, bonds are higher also.

Fed to Extend Period of Easy Money

Stocks leaped on news that the Fed will extend it's ZIRP through the end of 2013 -- nearly another three years.

Scrambled Greece?

I don't know how much of the overnight sell-off is due to pessimism over Greece, or if it is due to liquidations in anticipation of the Fed's FOMC meeting today and statement tomorrow. It's probably some of both, but it is typical for people to lighten up on their positions in anticipation of Fed actions, so this comes as no surprise to me. The Fed's latest statement will be released at 10:30 am MST tomorrow morning.
Last night, Goldman Sachs indicated that they don't expect the Fed to initiate any additional quantitative easing, and upon that announcement, the selling began. It still isn't enough, however, to turn the market bearish.

More Alarm Sounded by IMF

This Is the News That Sent Stocks Higher?

No Deal on Greece Bailout

Germany rejected calls for boosting the size of the planned euro-zone bailout fund, even as talks on restructuring Greek debt stalled over the weekend and raised the specter of a possible Greek default.

Stocks modestly lower in early evening trading.