…And away we go!
Jackie Gleason’s tag line applies to the mood on Wall Street today. After a breakout and test, the S&P 500 is back in rally mode, at least as of 11am NYT Friday. Why? Not durables goods orders although it was better than expected.
It was Germany, where they breathed a sigh of relief that Europe’s backstop was not facing a near-term growth slowdown. One report on business sentiment unexpectedly rose in September.
This just reinforces the idea that multinational companies here – the ones driving the rally – are doing OK while the rest of the US economy flounders. It is the difference between the stock market and the economy. Domestic unemployment does not matter – for now.
The tanking dollar does not alter that theory. After all, it helps our multinationals export their wares.
So, I should be bullish? The tape is up, that is for sure. But there is something about gold being at record highs with no inflation. And even though bonds may have taken a little hit today, the 2-year yield broke down to record lows this week.
Stocks may seem healthy but other, smarter markets say otherwise.
