XRT is back to where it was on October 8, 2007! Amazing to watch this thing shoot the moon with unemployment near 10% and with households reportedly maxed out on their credit and no longer able to access the "housing ATM" for purchases.
What's fueling this thing? Short covering? People expecting an extremely strong economic recovery?
Two things: Massive amounts of fiscal stimulus and pure speculation. People are buying it because it's going up and finding reasons to justify their purchases after they already making them. It's sort of like the impulse buys they make at the department stores of the companies in this ETF that are causing them to be in debt and the nation to go broke--rather ironic.