“Ours is not to wonder why, ours is just to do and die”- Alfred Lord Tennyson, The Charge of the Light Brigade
First it was the gang from the “last shoe to drop” category, commercial real estate, that just finished printing new 52 week highs, now it’s the financial sector that is heading for their own highs. As I’ve said before, there is no playbook for this market, so shake it off and just play along with the other kids in the sandbox.
The perma bears are choking on their rhetoric just like so many perma bulls mistakenly picked bottoms in late 08 and early 09 and choked on their shoes. As a trader I find myself self in my own gilded age, where stocks go up everyday and the pullbacks aren’t worth the raising of an eyebrow. A new secular bull? Big rally in a bear market? You can’t short cover forever so that rationale is so March and April. Trimtabs has even subscribed to the grassy knoll theory and threw out a thought recently that it really may be the PPT, that is supporting the market. I think the market is like Pandora before the bad guys showed up in “Avatar”. Blissful, peaceful, nary a worry.
“But the volume is light.” The boys at Bespoke addressed that this weekend and made a good point. Maybe we have lower volume because we lost Lehman and Bear and about a thousand hedge funds in the crash. There is some truth to that, but there are so many other factors that contribute to it, not enough time to take that one on now.
Futures are up nicely as gold, oil, copper and materials are running. Look for Apple to make a run this week. CAT looks very good here too.
I’ve decided not to wonder why, just enjoy the ride. Hard to believe earnings are upon us again as Alcoa reports tonight. They will beat. Have a great day.