Market Montage

Again, not much to add to this market in terms of analysis – nothing matters other than central banks.  Last Wednesday/Thursday there were some 9 economic reports, 7 of which were disappointing or could be considered as such and all it got was one rare day down, and then new highs Friday.  Markets are up 10 of the past 12 sessions and 17 of 21.   Friday's move to 1666 was an exact 1000 point rally from March 2009's 666 bottom.  Since this most recent leg of the move has been medium fast rather than a huge spike ala 1999, things are not necessarily overbought on the daily chart but we are seeing extremely rare action on the monthly and weekly chart, due to a lack of any correction this year.   Aside from being above the monthly upper bollinger band the S&P 500 is some 12.5%+ over its 200 day moving average; over 10% is rare.  The DJIA has been up 18 Tuesdays in a row.  Etc etc.

It is a quiet week economically – a few …

Very little change from last week.  Whatever the news it is good news for the market – the economy is not strong enough to stop QE, but not weak enough to worry anyone.  We are in this perpetual 1-2% type of GDP, with job growth just above population growth each month and little inflationary pressure in figures the Fed cares about.  It remains all about central banks – the twin powers of Japan and U.S. continue to plow ahead unabated (with the yen decimated even further last week).  Last week a bevy of central banks joined in easing – Australia, South Korea, Poland, among a few others; again just last week alone.  This morning Israel joined the party; it has essentially been a bank a day this past week.   There really is no other discussion than the global action by central banks; it dominates everything in these markets.   Late Friday, the Fed talking head at the WSJ, Hilsenrath, wrote a story about a …

Friday was pretty typical of the year – when a key technical level was needed to be broken it happened in premarket.  There were 3 economic data points, 2 (including ISM Non Manufacturing) missed, but all that mattered was the employment report.  More broadly speaking with 5-6 weeks of weakening economic data all the market really did was go sideways in a wide range.  And that ended Friday with the break out of the S&P 500; even the lagging Russell 2000 joined in.

At this point there just appears no reason to do analysis anymore – the central banker liquidity seems to have …