Sanity returns to Wall Street - for now

By Paul R. La Monica, CNNMoney
2009-4-21 12:49:32

NEW YORK (CNNMoney.com) -- The stock market has enjoyed six straight weeks of gains but it's a toss-up as to whether it will hit a lucky seventh. The streak could be in jeopardy following Monday's big market plunge -- despite an impressive rebound on Tuesday.

And to that I say, "Hip hip hooray."

Stocks surged for all the wrong reasons during the past month and a half.

Shares of many banks rallied on the hopes that the worst was over for the beleaguered sector -- even though the stress tests regulators are currently conducting are likely to show a banking system that is still very fragile.

Investors also seemed to be dismissing the potential broad damage of a bankruptcy at General Motors (GM, Fortune 500) and/or Chrysler.

And many seemed too quick to pronounce that consumers were ready to start spending freely again just because retail sales improved modestly from December's awful levels.

	Investment Basic Investment Overview Investment Approache Fundamentals Data Investment Stories www.fxj108.com	Sanity returns to Wall Street - for now By Paul R. La Monica, CNNMoney 2009-4-21 12:49:32 NEW YORK (CNNMoney.com) -- The stock market has enjoyed six straight weeks of gains but it's a toss-up as to whether it will hit a lucky seventh. The streak could be in jeopardy following Monday's big market plunge -- despite an impressive rebound on Tuesday. And to that I say, "Hip hip hooray." Stocks surged for all the wrong reasons during the past month and a half. Shares of many banks rallied on the hopes that the worst was over for the beleaguered sector -- even though the stress tests regulators are currently conducting are likely to show a banking system that is still very fragile. Investors also seemed to be dismissing the potential broad damage of a bankruptcy at General Motors (GM, Fortune 500) and/or Chrysler. And many seemed too quick to pronounce that consumers were ready to start spending freely again just because retail sales improved modestly from December's awful levels.