January's durable goods orders were weak, the dollar is tanking and crude prices are soaring. Meanwhlie, Fannie Mae, Toll Brothers and Nortel reported quarterly losses early Wednesday. But if the past three days are any indication, these kind of gruesome headlines should be good for the stock market.
Bear markets often bottom when the headlines look the worst, so the past three days of gains have some bulls excited. But the reality is the market is still rangebound and risks remain this rally is a "headfake", as wrote yesterday. Not surprisingly, Henry "Mr. Sunshine" Blodget agrees and it's unlikely Ben Bernanke's Congressional testimony today will alleviate the various and related woes over housing, credit and inflation.
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