I couldn’t find a picture of a bull wearing a red cape but the market moved up for the eighth straight day following a better-than-expected ADP jobs number and some strong retail sales reports. 8% rally in eight days finally put the double dip recession fears to bed since the last jobs number.
Traders are contemplating the possibility of a “sell the news” reaction to the jobs number tomorrow morning as they booked some profits at the close. A couple of encouraging signs for the bears are the pickup in call buying today and the VIX’s ability to find footing off the morning low.
Chasing a runaway market is not easy, but momentum this strong tends to be sticky as under invested bulls look to put money to work on any minor dips. We also have option expiration and the start of earning season to consider next week.
