Thursday, February 3, 2011

Bulls Charged In

We had a little selling this morning but in this market, it is like waving a red flag in front of bull. The buyers charged in, and then after some comments from Fed Chairman Ben Bernanke, they concluded that the Fed was determined to keep on pumping the liquidity indefinitely. We ended the day at a new high, and once again have crushed all doubters, skeptics and bears.

This makes for an interesting setup for the jobs news tomorrow. Obviously, market players aren't particularly worried about a bad number, and given how this market has reacted to economic news lately, they probably shouldn't be worried. The bull case is that the trend in employment is improving, and it is likely that any big surprise to the downside will likely be dismissed as an aberration.

So the uptrend continues, and we'll see what impact the jobs news has on it tomorrow.

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