The Groundhog 'German Confidence' Day Market
When in doubt how to justify the latest central-bank funded stocks ramp, take advantage of the fact that algorithmic memory is so short, the entire market can move higher on exactly the same catalyst used twice in the span of three days.
From February 19
From February 22
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Something tells us there will be, out of the blue, a third, then a fourth, etc., German confidence indicator popping up next week and, it too, will surge just to "validate" the spin.
As for reality, here is what is apparently driving this surge in German confidence:
And this is what we said yesterday when we reported on the German PMI misses:
German manufacturing PMI missed expectations of a rise to 50.5 from 49.8, instead printing at 50.1, while the Services PMI outright declined from 55.7 to 54.1 (55.5 expected). We wonder how much higher this latest economic disappointment will push German investor confidence.
Quite a bit higher as it turns out.
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