Continuing with a recent theme, here are two questions of interpretation.
Interpreting Market Action
During today's trading stocks opened lower, staged a big mid-day rally, trading in positive territory. Finally, stocks closed about 2.4% lower. Here is a chart.
With the trading in mind, what do you think of this news story:
The text of the story continues the theme. The problem is that the downgrade news was widely available before the market opened.
Secretary Henry Paulson was asked how he would rate his performance on a scale of 1 – 10. He answered that if the question was regaining stability in the financial system he thought that "we were close to a 10."
Judging from media and pundit commentary, most would disagree. Is there any basis for supporting Paulson's claim?