Once again, the bulls were impressive and kept pushing right into the close. We had the anticipated news that Italian Prime Minister Silvio Berlusconi would resign -- but with conditions and not immediately. The market was unconcerned and launched another Europe-is-saved rally.
The action has become a bit V-ish again as we recouped almost all of last week's losses and are now challenging the highs hit the last time Greece was bailed out and Europe was saved. Just imagine how far we can run when Italy is bailed out and Europe is saved three or four more times.
There are folks who are very anxious to buy this market and are willing to do so even when there is a questionable basis for bullishness. I don't think anyone really believes that the problems in Europe are being systematically solved, but market players are more fearful of being left behind than they are about being wrong about how positive the news really is.
This appetite for stocks is largely a function of too many folks having been caught underinvested during the big run in October and now they are trying to play catch up as the year winds down. Given this market's recent propensity for V-shaped rallies, it isn't too surprising that there are folks anxious to buy this rising market.
We are always at the mercy of news out of Europe overnight, but even if we are hit with something negative, I expect to see the dip buyers show up fast. We have an uptrend in place as we climb a wall of worry. The big concern for many traders is that they don't have enough money at work.