Easter Weekend

Has Easter weekend seen the beginning of a market rebirth? With Wells Fargo announcing that it will post a record quarterly profit of over $3 billion, it sures sounds like better news than we have had in quite some time. The markets love this news, and so do I.

But can we trust it? How has Wells Fargo come up with such a great new number? Simple, two ways:
1) Wells merged with Wachovia, and the merger will allow them to post savings as they lay off workers.
2) The new accounting rules issued by the FASB allowed for fewer write-offs.

Wells Fargo is really in the same boat is has been in. Lots of terrible assets. Way too much executive compensation. A slowing economy. The reality hasn't changed.

I hope we do rally further. I want better prices to sell this dead cat bounce at. This downturn is far from over. So look out for a post-Easter slide...

Cheers!