Global action by central banks and China ‘s reduction in bank reserve ratio caught bears by surprise after the S&P bank downgrade after hour yesterday. The squeeze was on all day especially in the final 30 minutes of trading. What a difference 3 days make, after a gloomy Thanksgiving week. The S&P 500 is up close to 8% so far this week with two monster gaps overnight. Will this run cause some performance anxiety as we head into seasonally strong Dec 1st Could a strong Jobs number be priced in to some extent since temp hiring during this time of the year is pretty normal Just like when we were overdone to the down side, we have quickly flipped to the other extreme. As we have seen with QE2, we could continue to run, but a bit of caution and consolidation may be in order.
