Very puzzling. All the signs point to increased prices and possible recession, but earnings are going higher. Are we trading off of present earnings, or future earnings? Wall Street has always shrugged off present earnings and trading 6-12 months down the road.
I can't see how large increases in raw materials and oil will not ultimately raise prices of finished goods and services. This market is so much like 2000 that it is scary. The fundamentals did not matter. You just needed to be in the market so you didn't miss that 10% pop in a week.
In 2000, there were so many stocks to short, but how could you? Companies trading on no earnings, but would gain 50% in a months time. Market capatilization values larger than some of the best run companies in the world. We may not have surpassed the 2000 insanity yet, but we are getting close...
Futures are up everyday no matter what. There is never any follow thru, whether its down 10 , 50 or 100 pts., the next day the futures are always up. Historically its easier for the market to go down than up but just like yesterday it was an all day grind just to get the dow down 50 pts. with battles all day, and it turns around and opens up 50 in 3 mins the next day. Tough fighting the tape, but the tape is misleading. The rotation has been unbelievable as the averages stay up but very few stocks do.Probally looking at a 100 pt. day since its struggled most of the week. You know it will have to hit ne all time highs before its said and done
How about the upgrades to GM and X, both reports sucked and they're losing money hand over fist. Glad I got out of INTC, it may still trend lower but it looks like some brokerage is preparing to upgrade it based on stock movement.