Here's what the Financial Times had to say today about the markets:
"Christmas is the season to watch reruns of old movies. But even before the holiday starts, financial markets are getting into this spirit.
Never mind that analysts are now muttering darkly that 2008 could produce stagflation – a concept that, until recently, seemed as dated as The Sound of Music. In the equity markets, another oldie is now back on investors’ radar screens: equity market volatility."
Now most investors won't get the subtle dig at Bernanke, but I'll let you in on it. Bernanke misspelled the word "edelweiss" at the national spelling bee where he placed 26th. He spelled it with two i's.
And the song "Edelweiss" came from the musical The Sound of Music. Now that we have cartoons, and scholarly digs at Bernanke, I suppose he'll finally catch on, as everyone and his mother is getting tired of the same old story and re-runs from the mouth of the Fed.
But now, the market doesn't even care. The stock market, made a wonderful retest of the lows with the action today. So the bears, who've had the run of the place, will finally feel some pressure as the market trades higher, led by the technology stocks. Oracle came out with good earnings tonight; tomorrow we have RIMM's.
It should be a good couple of days before the final weekend of Christmas shopping.