Theory no. 3

STI 2700 BNP EPW080529 now 0.12 (So-so)STI 2800 SGA EPW080627 now 0.145 (Safer)
Positive News 1) JP Morgan decides to increase price bid for Bear Stearns from $2 - $10, FED havent give approval, but market assume it would and that would mean that whenever a company gets into trouble the FED will bail them out, this confident thinking add to the recent rally.
2) Oil Prices and $US dollar dropping and raising respectively. If this countiues , will give more room for FED to cut interest rate aggressivly and inflation will no longer be a big problem
3)US data on housing which is the root cause of all the problems soo fast, showed an increase in sales by about 2.9%. Experts say it is temporary as prices of homes dropped alot. What the market only concentrate on is the 2.9% increase and not the price dropping drastically.
4)Fed will countiue to do more for the torubled market like pump more $$, cut more interest rates , might even buy back those mortage related investments.
Why i still hold a bearish view1) Credit crunch Problems still on going, people in the US are borrowing more from short term loans which is a bad sign
2) Banks have not yet disclosure thier job loss data and its exposure to sub-prime once the mortage rate resets, i know.. its hard to understand the links between sub-prime and exposure and all these shit.. but shit remain as such...shit.
3)China has yet to do something about its all time high inflation
4)Credit card problems , this factor like no news on it
Soo now do you still old a bearish view? HSI and STI rose like 150 points and 1356.30 points as at march 25 2008.