As financials and builders (and implicitly markets in general) levitate further, Peter Tchir of TF Market Advisors takes a brief and somewhat sarcastic look at the factors that are supporting the rally.
Strong auctions helping. We forget March 2010 Greek auctions and August 2011 auctions. flippers and short covering or real change of risk tolerance?
Greek PSI rumors helping. Watching the sausage being made might turn you off sausage for awhile.
Financials and the bonds of financials are really strong. Europe in particular. Finally!! LTRO 1.0 should have helped these the most from the start.
Cheap nat gas - great for now - but does the drilling slow down affecting jobs and pipes? I think a rebound in nat gas prices would actually be good.
IMF going to manufacture 500 billion? From where? Who has that money for them?
Debt ceiling? Who needs a debt ceiling when we had the foresight to include loopholes in the pension plans letting them get iou's of iou's rather than just iou's.
Jobs data was great but let's see how it plays out and fewer people getting laid off that qualify for benefits is not the same as new jobs.
80% of drivers say they are better than average drivers. Home builders, all building homes and long stock options, say conditions are improving.
Weak bank earnings - largely ignored.
It feels like we are in the last stages of a move the exact inverse of last week. We sold off ahead of the downgrade rumors and then the market bought the news. This rally seems overdone now and any "news" is likely to provide a nice little sell trigger.