Bill Clinton would have been proud of this market today. 100 points? Pfff. 150? Please. Lets go for 200! And why not? We only had some decent unemployment numbers released (which definitely arent skewed or biased in any way, whatsoever), a small tick up in the ISM non-manufacturing Purchasing Manager's Index (PMI), and a few other less significant data points. The economists and traders running the show clearly took another hit of their “positive pipe” and pulled the market up by its bootstraps for a solid 1 .74% gain. Today marked a reversion back into the upward channel that has been in place September of 2010. However, if we cannot close the week out above 1330 on the SPX, we may have to seriously reconsider the “Melt-Up Mondays” that have taken the cake for the most ridiculous market phenomenon over the past few months.
A worrying sign from the VIX today was the low volume and small candle that precipitated the massive run up on stocks. The “risk on” mentality clearly dominated the market, but whats scary is the lack of volume through the day compared with recent months. Where were the bears? Waiting in the wings? Waiting for tomorrow?
Tomorrow could be a massively important day for the long-term forecast in the market. Not only are the non-farm employment numbers and unemployment data due at 8:30 am ET, the price action and market sentiment through the day may signal either a return to the financial euphoria of late, or back into “risk off” mode. Until tomorrow, Im off to have a drink…
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