Blast To The Future: December 31, 2013 Market Summary
Tuesday, December 31 (Bloomturd) - U.S. stocks rose, with the Standard & Poor's 500 Index recovering from earlier losses, after data showed consumer confidence rose to the highest level since 1929 and home prices jumped the most in recorded history.
The Dow Jones Industrial Average rallied 0.8% to 23,115.69 at 4 p.m. in New York. Trading volume on the NYSE was light, with total shares traded falling to the lowest level since the exchange was temporarily closed for World War I.
"At the end of the day, there is just too much negativity out there. People are concerned about falling earnings estimates, Europe, and what happens when the Fed begins to taper, but prices just keep going up," said chief investment strategist Jim Stallsem. "When prices go up, the market rises. It's as simple as that."
The market has rallied every trading session since the exchanges decided to close on days not named Tuesday earlier this year. As of today's session, stocks have closed up 51 Tuesdays/trading days in a row. Veteran floor trader Art Smashin questions whether the one-trading-day week is constructive. "Well, let's just say I'm burning through a lot more ice cubes these days".
Prominent strategist Shaggy Yusuf Cohen pointed to comments by Fed Chairman Dick Dickyanke in his recent testimony to congress. In response to whether the Fed has any tools left now that its balance sheet is above $5 trillion and it owns every outstanding Treasury issue, the chairman replied "Fuck it. I mean, we can just buy houses and shit directly. It's like, that's the whole point anyway, right?"
Most investors interpret his comments as confirmation that the "Dickyanke Put" is firmly in place and are beginning to extrapolate this year's gains based on the number of Tuesdays in 2014. Market technician Laszlo Shrill, for example, points out that his redesigned Tuesday Ruler points to a 171% gain for stocks in calendar 2014.