Goldman "Rumor" Whipsaws Market

Now this is a weird development:

U.S. stocks had pared gains in late trading on market speculation that
the world's largest investment bank (GS.N: Quote, Profile, Research)
would make an announcement, possibly related to one of its hedge
funds.

Several traders told Reuters there was speculation that an
announcement was forthcoming, but said there was no consensus on what Goldman might say.

So there was a rumor that Goldman might say something but noone knew what. People assumed it was bad and sold and the market which went from up 180 to almost negative territory in little less then an hour. Then when Goldman denied the rumor the market recovered to settle up 150 or so. Now that should ping someones fear quotient a little big. We might be doing some serious "wall of worry" climbing this week. In any case it will be a great time to put in some hedges on the cheap.