This Was A Cocked-Gun Rally

colt pistol gun

Photo: wikimedia commons

Some more food for thought on the huge rally we saw today…This line from Mike O’Rourke’s night-time note yesterday stands out:

Days like today feel like wasted bullets because the data was good, but markets did not respond.  

This has been the case for a while: Good economic data overshadowed by the scene in Europe or Asia (the “Chinese tightening meme”).

So the bottom line is that bulls have had the gun cocked and loaded with good data for a while, and were just waiting in a break from the negative headlines to fire off, and that’s what we got. The question is: For how long will the good headlines last, and how much catch-up must the market play to reflect the data?

Click here for a run-down of today’s action >

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