Before You Start Feeling Good About Yesterday's Rally, Read This

Joe Weisenthal 

 Dec. 1, 2011

 4:50 AM 

Image: NASA

Feeling good after yeserday's central bank-inspired mega-rally?

 
BTIG's Dan Greenhaus would like to remind you of a few things that happened in 2008

...we cannot help but feel some sense that what might be unfolding is eerily similar to 2008 in some respects. In many instances, some cessation in economic data worsening and/or central bank moves to boost liquidity engendered a meaningful market rally.

• The S&P 500 was 5.0% higher shortly after the Fed stepped in to facilitate the BSC/JPM deal and two months later was higher by 12%

• The S&P 500 rallied about 6% after the Fed first reduced interest rates in 2007, eventually closing at an all time high

• The index rallied about 6% around the time the Fed extended and expanded the PDCF and TSLF

• When central banks announced a global rate cut in early October 2008, the S&P 500 rose by nearly 12% in one day shortly thereafter.

• Around the time the Fed launched QE1, the S&P rallied by nearly 20%