The Only Way Is Up?

As Yogi Berra once said, "this is like déjà vu all over again". Just like last quarter, INTC pulled off a surprisingly strong quarter that caught bears and underinvested bulls by surprise. There was a scramble to reposition, which meant even a mild pullback was a buying opportunity. We picked up steam in the afternoon and finished near the highs of the day. Thankfully, the DJIA finished over 10,000, so maybe now the media will find some other trivial story to report.

There isn't much new that can be said about this market. It continues to be tremendously strong and is causing massive frustration for folks who are trying to add long exposure. I won't even bother to mention how frustrating it must be for the bears who keep focusing on the fundamentals that simply don't matter.

We have some more very important earnings reports on the agenda this week, most notably GS in the morning, so we are likely to see volatility pick up. I suspect that the hoard of dip buyers who aren't see any real dips will continue to keep this market from falling very much. If we sell off on any earnings reports, it will likely be viewed as a buying opportunity. There is just too much positive momentum right now for the market to fall apart. You might have some qualms about paying up at this point, but you should some real doubts about trying to short this strength for anything other than a quick trade....