As we mentioned earlier, it’s highly advisable to be very cautious about any early election news coming out of Iran. The latest news out of Iran, however, completely contradicts the earlier news which had the opposition party declaring victory. Now we’re told that the Iranian state news agency has declared Mamoud Ahmadinejad the winner.
If the story of the opposition’s victory really was feeding the mini-rally this afternoon, this could mean we’re in for a big pullback. We’re sceptical about all canned explanations for movements of broad market indexes, of course. So maybe all this chatter is much ado about nada.