When we have a GDP that shrinks 6.1%, and the market shrugs it off, it means that stock investors see much better times ahead, and that micro pullback and consolidation that we had, was the extent of the pullback.
It didn't matter that the Economist put an anglerfish on their cover that the bears latched on as a "classic" which supposedly portrayed the ignorance of the bulls!
Neither did the "vaunted" stress test!
And it didn't matter that the quants were blowing up, because they were short, and the market couldn't rally without the blessings of these providers of liquidity!
What these quants missed, is that their shorts, were the markets liquidity! And Mr. Market had decided to expose them! That wasn't in their equation!
And it didn't matter when the experts said the "swine flu" was going to crush the economy of the world.
The flu helped stage the rally! It showed that their wasn't sellers, and it also showed the public of the folly of Wall Street's predictions. The whole world, now knows what a trillion dollar loss by banks feels like in their 401K and in the value of their home. So how was it possible, that this swine flu was going to cause four trillion dollars of damages?
The swine flu can't hardly even close a school; how is this going to shut down our economy?
Now a week ago, I said we are starting the next leg up, and that it was "patently obvious."
It's now patently obvious that Monday's downdraft was an orchestrated move by the bears to crack the market. And it's now patently obvious, that we have already had the price and time correction in this bull market. We corrected 5%; so that was the price correction. And the time correction was one day.
It's now patently obvious to a few more people!
And now, this market rally will broaden out to encompass even those sectors that didn't come along for the first ride!
Today even Goldman Sachs had some nicer things to say about the housing stocks, as they now "trust" their book values more. As though Goldman is the arbiter and judge of trust! And just like Hatzius was dragged kicking and screaming into the bullish camp, so will Goldman's analysts!
But soon, the bulls won't even have to have these p*ssing contests with the bears.
Because this leg up is too patently obvious!