As we stated, this week contains a positive seasonal bias. So far…so good. The market was much better than the Dow yesterday and will never complain about that. Even the small caps got into the fray as the Russell actually led up yesterday. If that continues, the market only strengthens.
We have no complaints here as the move has broadened out on the back of massive easing around the globe. German announces they are almost in recession and their market soars. Again…easy money.
Don’t scratch your head. Price is price…and easy money to the tune of $13 trillion plus is in force with more to come. Yes…we said $13 trillion as we posted a chart here yesterday. Soon, we are waaaaay due for some pulling in.. Markets are waaaaay stretched. The good news is that we are seeing rotational pullbacks on a daily basis which are not affecting the indices.