Once again the last-hour frenzy kicks in and dishes out some major pain to any bear who dared think that the market might rest for longer than a few hours. Of course we reversed back down sharply in the final minutes just to make it even more difficult.
It is hard to believe that there isn't some sort of program trading manipulating the market given the intensity in which we turn, but we also must have some extremely skittish shorts helping to accentuate the move when they scurry to cover yet again. The idea that Paul Krugman is somehow responsible for triggering the action is downright naive and it is a shame that Bloomberg would even suggest it. This market has had so many late-day moves like this that it doesn't need a reason.
There is still some very strong momentum in "junk" stocks. It was bit narrower than it has been, but it is obvious that the hot money is going to stick around when we have these sort of wild swings at the end of the day to prop things up.
I'm sticking with my longs; just waiting to see what happens. I'm encouraged by today: not that long ago we'd have rolled over and been down 250 on the Dow. It is very tough not to think of all the reasons why the market might rest or correct a bit, but the underlying support is undeniably strong. You can be a skeptic but you should also be opportunistic and try to find the longs you can play while the sentiment supports them. At some point we will be wondering what happened to the momentum so we might as well enjoy it as much as we can for now.