There is nothing new to be said about the market action today. We just keep on doing the same thing we've done for many weeks now -- chug steadily higher without any significant pullbacks. We had a slight hitch in our giddyup in the early going as there was some concern about a weak retail sales number but it is going to take more than that to dissuade buyers. There are just too many who are trying to find a way to add long exposure in this persistently strong market and even a minor pullback is enough to draw them in.
There are folks like Doug Kass who have a very negative view of this market based on fundamental considerations, but at the moment the market isn't listening to any arguments about why it shouldn't be going up. Doug has some very valid points, but until the market beast shows some signs of caring I'm not much interested in the short side.
One of the main reasons this market has had such a relentless and steep run is that so many folks are struggling to reconcile their personal views on the economy with what the market is doing. Few folks I know are as optimistic as this market seems to be and that is what has kept so many from embracing this rally.
They slowly capitulate and start buying a little out of frustration from not being in for this rise and that is what keeps things going day after day. It is a game of musical chairs in some ways, but as long as the music is still playing and folks are finding chairs ,they still are happy to buy. At some point it will stop but trying to guess when is impossible.
Other than being a bit extended, there just isn't anything much wrong with the price action in this market. You can argue all you want about why the market is wrong to be so strong, but it isn't going to make you any money....
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