I have two words to say about this rally. Less bad. Less bad is so good I have turned ragingly bullish. Forget that the revisions make the "beat" a miss. Forget that the economy is still declining. Forget middling valuations, even on normalized earnings.
Mark to market is history. The second derivative is positive. And hedge funds are underinvested.
Soon I expect stock investors to forgo MTM for illiquid stocks and create their own valuations for thinly traded shares. Why do the fixed income guys get all the love?
Forget the Great Unwind. With the Infinite Bailout we have kicked that can down the road. Forget that a "fundamentally sound" system came so close to crashing the world panicked Armageddon just a couple of months ago. All the conditions which led to the meltdown are yesterdays news, history, old hat.
How high can this rally go? Like the bailout, to infinity! And beyond. So load the boat, pile in, stocks are gonna rocket. Bad news is good. Good news is better. No news is best! All of our problems are sovled.
Uncle Ben is now King. And Geithner is his prince. Long live the king!
Why the sarcasm? Try being underinvested, and try being short, in the bull market of the beast!!
It's enough to put anyone on edge!
And like Mr. Stossell of 20/20 who got slapped around by the wrestler who became the original bounty hunter, the bulls are slapping around the bears, and they'll continue slapping them around silly.
Look at the action in RIMM! How much pain do you think the bears can take?
So take another look at US Steel (X) which is just trading above 25. This stock has 10 quick points in it, because the deep cyclical will be the next stocks to move aggressively!
Now we see that the tech stocks have been leading the market. Who ever came up with that idea? Oh that's right--It was right here--before it happened, on March 16!
Why not? Weren't we told that tech won't lead this market?
Wouldn't it be most frustrating for the bears for these stocks to go up while their earnings are going down? And if tech stocks, with declining earnings will be going up, what will happen to those stocks that still have rising earnings?
They'll be re-appraised on the Wall Street auction!
And it will be advertised here, before it happens.
To the bear's chagrin!