OK, how do you explain the complete lack of volume in the market the past week? IMHO, smart money expects most companies to report good Q1 results but guide lower for Q2 & Q3. The market won't like that. Besides, a 10-15% correction here would be healthy and you know it. Stay in denial or go for a ride, all up to you and the other perma-bulls.
Juan, Juan, Juan, all good points, but you are missing on the obvious.
1)For the past couple years and even more in the last several month Q E has been the main driver in the stock markets, PERIOD.
2) What do you think is going to happen to the markets when they pull QE2, and they HAVE TO at this point. All that liquidity is going to be drained out of the markets and just as important, ALL THE SPECULATIVE MONEY WILL BE GONE AS WELL.
I haven't even mentioned what the effect is going to be of inflation, rising interest rates, downgraded earnings, reduced government spending, etc., etc., etc.
The end of QE could cause the markets to pull back 10-15% by midsummer all by itself, maybe sooner.
About the best the Fed can do is start scaling back on the market manipulation before the official end of QE, and it is my suspicion that this may already be happening now as evidenced by the markets pulling back last week.
Also, the banks "surprise" earnings are complete turd numbers and the pros know that. Any rise in the markets because of this will be bogus and short lived due to more pumping by the banksters.
What if feels like to me is that others are expecting no more QE and that will be headline news so market metals oil down, even starting now. Sell in May go away, esp before June where Ben says no more QE. Yet they we be doing QE. On going QE so once the market freaks, I will be looking for a bottom.
Gordon Gekko might have been right that "Money never sleeps". But it does like to take a break and go party. I know, was in Vegas last weekend and it was wild and crazy like always. People were spending money like it was 1999. Aria, Cosmopolitan, Wynn, the M Resort, Palms, Palazzo -- ALL PACKED.
That was the 20% of Americans and tourists that is loaded, or pretending to be. The other 80% is f u k k i n g sideways or barely getting by. I know, I was at the Bellagio last October and thought the same thing, then I drive through East L.A. and see what is really happening.