The “bullish case” is currently built primarily on “hope.” Hope the economy will improve in the second half of the year; Hope that earnings will improve in the second half of the year; Hope that oil prices will trade higher even as supply remains elevated; Hope the Fed will not raise interest rates this year; Hope that global Central Banks will “keep on keepin’ on.” Hope that the US Dollar doesn’t rise; Hope that interest rates remain low; Hope that high-yield credit markets remain stable.
For the third time in six months, US equity markets have exuberantly decoupled from earnings expectations thanks, in large part, to jawboning and coordination from Central Banks. With stocks near record highs despite the earnings "mother's milk" expectations tumbling, one can't help but wonder, as CNBC's Bob Pisani did this morning, given the comments from Evans, Lockhart, and Bullard, "It's possible the Fed has seen the market reaction and become alarmed by the complacency."
What happened? It's possible the Fed has seen the market reaction and become alarmed by the complacency. It's true, the probabilities for even a June rate hike—let alone April--declined dramatically in the face of the Fed meeting. That may have alarmed the Fed, and so some members may feel the need to keep the markets more alert.
Who could have seen that coming? Bob Pisani is about to get "worried" as VIX broke above 25
Remember 'The Santa Claus Rally' that Bob Pisani said "we should expect" - well The Dow is now down over 1200 points from the highs just before the end of the year and extending those losses as Reuters reports, PBOC advisors are said to call for steeper yuan depreciation, pressuring the government to depreciate by 10-15%.
Stocks are rallying "and they should" according to CNBC's Bob Pisani... but nothing else is playing along.
"2015 Was Like Commuting By Rollercoaster" - Art Cashin Reviews The 2015 Market And Shares His 2016 OutlookSubmitted by Tyler Durden on 12/10/2015 14:27 -0400
"2015 was like commuting by rollercoaster. There were heart-stopping drops, there were nearly vertical ascents, and when it was all over you got off just about where you started and it cost you money."
From its highs at $60.97 (after opening at $60), Ferrari has crashed over 16% and broken below its IPO prices today...
Listen to the following 15 second clip of Bob Pisani explaining what the important thing is... and decide which centrally-planned, micro-managed economy's omnipotence he is questioning...