Catalysts are irrelevant in this market. Keep in mind, the futures were up huge Thursday evening, long before any of the so called catalysts were reported, employment report, ISM, etc. on Friday.
What does that tell you? It tells me the market was going to be up huge on Friday, regardless of how the economic reports came in. Bad news is good news, and good news is good news, so catalysts have no meaning at all at this point.
I'm beginning to wonder if there's a geopolitical event, would the financial media and talking heads on CNBC call it a "one-off" event?
Inflation is running high in Europe? I gather you do not follow the data as last week the French PPI, Italian PPI and German CPI couldn't even meet the lowered expectations. BTW-The ECB is not dropping their target rate because it would strengthen the USD and send stocks in Europe and the U.S. in a downward spiral.
That's a good question. We haven't had a scary headline thats mattered in months. Even the fiscal cliff dip was more about year end tax selling than real fear. For the immediate future, we should have a shallow pullback to ease some of the currently extreme readings in currencies and treasuries. Big the next big drop will require a bolt from the blue. Not sure Europe qualifies.